Hhgregg profit drops 20% in Q3
Indianapolis -- Hhgregg reported Tuesday that net income for the quarter ended Sept. 30 dropped 20.4% to $3.9 million, compared with a net income of $4.9 million in the year-ago period.
The electronics and appliances retailer cited expenses associated with its Washington, D.C., market debut, as well as a dip in same-store sales, as partial reasons for the plunge.
Revenue surged 44.8% to $480.9 million in the period. Same-store sales decreased 1.5%, attributed to a weakness in appliance sales during the quarter.
Dennis May, president and CEO, said, “We entered the quarter on a strong note, with consumers responding very favorably to promotions and improving trends in the video category. As the quarter progressed, we saw a deceleration in both appliances and video sales.
“While the second quarter may be a reminder of the sensitive nature of the economic recovery and the consumer’s purchasing capacity, we continue to gain market share and remain excited about the company’s long-term growth prospects,” he added.
The retailer said it expects to open 35 to 45 stores in fiscal 2012, with the majority of those openings slated for Miami and western Pennsylvania.
Hhgregg currently operates 173 stores in Alabama; Delaware; Florida; Georgia; Indiana; Kentucky; Maryland; Mississippi; New Jersey; North Carolina; Ohio; Pennsylvania; South Carolina; Tennessee and Virginia.