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Q2 same-store sales drop at Hhgregg

A decrease in same-store sales in the consumer electronics and computing and wireless categories at Hhgregg, partially offset by an increase in the appliance and home products categories, resulted in a comparable-store sales decrease of 6.2% for the second quarter ended Sept. 30.

The appliance category comparable-store sales increase was driven by an increase in the average selling price. The home products category comparable-store sales increase was primarily a result of sales from the introduction of furniture and fitness equipment.

The consumer electronics category comparable-store sales decline was driven primarily by a double-digit comparable-store sales decrease in televisions, largely resulting from the company’s strategy of offering fewer entry-level models. The computing and wireless category comparable-store sales decrease was led by a decline in sales of mobile phones and notebook computers, partially offset by the continuing increased demand for tablets.

The company’s comparable-store sales decrease resulted in net sales of $568.3 million for the quarter, a decrease of 3.3% from $587.6 million in the prior-year period.

“Though we continue to see headwinds in our consumer electronics business, we are pleased with our ninth consecutive quarter of comparable store sales increases in the appliance category,” said president and CEO Dennis May, highlighting the positive. “Additionally, we are pleased with the completion of our sales floor reset and the progress made with our other initiatives aimed at the long term success of transforming our retail strategy. We have continued to make investments in our business, including the expansion of our consumer credit capabilities, with a seamless secondary credit option, and enhancements to our website. While pleased with our early efforts in reshaping our sales mix, our sales performance continues to demonstrate that this transition will take time as we introduce new products to offset the sales losses from the consumer electronics category.”

The company is looking ahead and preparing for the holiday season by focusing on hiring and training staff and resetting its sales floor, which includes an expanded focus of premium televisions and an expanded furniture offering.

Hhgregg currently operates 228 stores in Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia and Wisconsin.

 

 

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