Gregg Appliances, Inc. reported operating results for its first quarter ended June 30, 2006. Gregg Appliances reported a 9.9 percent increase in total sales for the first quarter ended June 30, 2006, as sales increased to U.S. $203.2 million compared to $185.0 million for the comparable prior year period. This increase in sales was attributable to the addition of eight stores during the past 12 months and a 1 percent comparable store sales gain. The comparable store sales performance was driven by gains in major appliances, bedding and in flat panel TVs outpacing the sales decline in projection and tube TVs.
Net loss for the first quarter ended June 30, 2006 was $1.4 million as compared to net income of less than $0.1 million for the comparable prior year period. The decline in earnings was primarily attributable to a shift in the timing of the recognition of certain vendor rebates designated to support our growth. This timing difference contributed to a $2.2 million decline in gross profit during the first quarter of fiscal 2007 as compared with the comparable prior year period.
Gregg Appliances also announced that it expects to open three new stores and relocate one store during the second fiscal quarter ending Sept. 30, 2006. The company anticipates its comparable store sales to range between flat and a low single digit decline during the second quarter of fiscal 2007. Due to improving merchandise margins and savings from the decision to exit product services last year, the company expects that earnings before net interest expense, income taxes, depreciation and amortization for the second quarter of fiscal 2007 should equal or exceed that recorded during the second quarter of fiscal 2006.
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