Retailer hhgregg Continues to Turn Focus to Appliances
Feb 14, 2013
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Appliances and electronics retail chain hhgregg, Inc., reported that comparable store sales of Appliances were up 6.1% in the third quarter of its current fiscal year (compared to the third quarter of its previous fiscal year). Appliances comps were up 6.8% in the first nine months of the fiscal year. The third quarter of the fiscal year ended Dec. 21, 2012.
While appliances were up, video products dragged results down. The retailer said it would continue to shift its focus away from video products and increasingly to appliances and other large consumer home products.
Comparable store sales for the third quarter were down overall, however, due to a third-quarter decrease in Video products of 24.6% and a decrease in the retailer's Other product segment of 15.2%. The Other product segment is made up of accessories, audio, fitness equipment, furniture, mattresses, and personal electronics. The retailer's fourth product category, Computing and Mobile Phones, saw comps increase 16.2% in the third quarter.
hhgregg reported total net sales the nine months ended Dec. 31, 2012, of $1,877,127,000, down slightly from $1,879,603,000 in the nine months ended Dec. 31, 2011. The retailer reported total net income for the most recent nine-month period of $15.4 million, down from $27.7 million in the previous nine months.
"With the continued growth of our appliance business and the introduction of new categories, such as furniture and home fitness, we continue to reduce our reliance on both the video category and innovation in consumer electronics," said Dennis May, president and CEO. "Over time, we plan to continue to refine our mix towards large consumer home products, which include a greater mix of appliances, furniture, fitness equipment and other home products that leverage our consultative sales force, ability to deliver and install big box product, and our private label credit card."
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