The holiday season was far from bright for home electronics retailer hhgregg, which reported a double-digit drop in comparable store sales for the company’s fiscal year third quarter.
For the three months ended December 31, net sales decreased 23.7% to $453 million. Comparable store sales were down 22.2%. Net loss per share was $2.10 and gross margin decreased to 22%.
On a segment basis, comparable sales in appliances were down 4.2%, consumer electronics down 38.6% and home products down 9%.
“During the quarter, we were challenged by the competitive pressures in the market, specifically in consumer electronics as it is a larger mix of our business during the holidays,” said Robert Riesbeck, hhgregg president and CEO. “Additionally, the consolidation of two existing distribution centers into one new distribution center had a temporary negative impact on our sales for the quarter, in the range of $20 to $25 million.”
Riesbeck said, going forward, the company will remain focused on its appliance and home product categories while repositioning its consumer electronics business to focus on the premium side of the business.
“Although we are disappointed with our overall performance during the quarter, we are pleased with our investments made to shift our focus to appliances and furniture, through resetting store layouts, adding Fine Lines departments and promotions focused on our successful appliance business,” he said.
