Hhgregg fiscal 3Q drops 23 percent
INDIANAPOLIS (AP) — Regional consumer electronics chain Hhgregg said Thursday that net income fell 23 percent in the key holiday quarter, hurt by weak video game sales.
Hhgregg has been expanding beyond consumer electronics into other categories. CEO Dennis May said the company plans to offer more appliances, furniture, fitness equipment and other home products.
"Video and consumer electronics remain important to us, but we plan to increase our focus on these other large home products," he said in a statement.
Net income for the fiscal third quarter ended Dec. 31 fell 23 percent to $17.4 million, or 51 cents per share. That compares with $22.5 million, or 60 cents per share, during the same period in the prior year. Excluding one-time items, the company made 52 cents per share, matching analysts' expectations, according to FactSet.
Sales fell 4 percent to $799.6 million. Analysts expected $803.8 million.
Sales in stores open at least 14 months fell 9.7 percent. That is a key gauge of a retailer's fiscal health because it excludes stores that opened or closed during the period.
Hhgregg reaffirmed guidance for net income of 70 to 80 cents per share for the year. Analysts expect 79 cents per share.