Indianapolis-based appliance and electronics retailer hhgregg, Inc., had a net loss of $5.7 million in the three months ending June 30, 2012, compared to a net loss of $0.8 million in the same quarter a year ago. The quarter was the first quarter of the retailer's fiscal year.
But comparable store sales of appliances were up 6.3% in the quarter. Computing and mobile phones were also up, 8.75. Video products were down 16.7% and Other products (which includes audio, furniture and accessories, mattresses, and personal electronics) were down 19.7%. Store sales overall were down 5.1%.
The increased net loss resulted from a comparable store sales decrease of 5.1% and increased advertising and SG&A expenses, offset by the addition of 30 stores.
"Our first fiscal quarter proved to be more challenging than anticipated with sales and earnings coming in below our original expectations," said President and CEO Dennis May. "We reacted to the sales shortfall by making adjustments to our cost structure. We expect subsequent quarters to benefit from our cost cutting measures."
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