hhgregg Appliance Comps Up 16.1% in First Quarter Aug 5, 2010

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Appliance retail chain hhgregg, Inc. reported a first quarter comparable store sales increase of 6.3%, which was primarily driven by a 16.1% increase in the appliance category as well as a 2.4% increase in the video category.

"As a result of increased demand in our core categories, we have seen improved traffic in both our appliance and video categories, which has continued into the second fiscal quarter," said company President and CEO Dennis May.

Hhgregg had net income of $2.7 million for the three months ended June 30, 2010, compared with net income of $1.5 million in the same quarter of 2009. The retailer said an increase in net sales came from the net addition of 46 stores in the past 12 months, a comparable store sales increase of 6.3%, and a modest increase in gross profit as a percentage of net sales.

Net sales increased 53.3% to $436.0 million in the first quarter. The company opened 26 new stores in the quarter and remains on track to open another 12 stores by the end of the second fiscal quarter, with a total of 40-45 new stores in fiscal year 2011.

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