The losses mounted for hhgregg in the retailer’s second quarter, with comparable store sales also declining.
For the second quarter ended September 30, hhgregg posted a net loss of $18.4 million, or 66 cents per diluted share, versus a net loss of $10.1 million, or 37 cents, compared with the period in the year earlier. Adjusted net loss per diluted share was 51 cents versus 35 cents in the year-prior quarter. Adjusted net loss exceeded a MarketBeat analyst average estimate of 37 cents per diluted share.
Comparable store sales decreased 6.4% versus the year-earlier quarter, but the company pointed out that appliance comps increased 5.7%. Still, consumer electronics comps declined 25.1% while those for home products, primarily furniture and mattresses, slipped 0.7%.
Net sales decreased 6.6% to $454.5 million in the quarter year over year. Online sales increased 35.5% versus the previous-year quarter, the retailer maintained.
“In the second fiscal quarter, we continued to implement our strategic plan and to position hhgregg as the best option to purchase appliances, furniture and premium consumer electronics,” said Bob Riesbeck, hhgregg CEO. “We successfully drove continued growth in appliances and furniture during the quarter, with stable gross margins, offset by continued decreases in the consumer electronics category. We also maintained a debt free balance sheet at quarter end. We also experienced solid growth through our online channel. Our focus on the customer experience continues to reflect positively as we again saw increases in customer satisfaction scores. We are energized by the upcoming holiday season as we look to maintain our steady progress.”
Hhgregg currently operates 220 stores in 19 states. In order to achieve greater profitability and reduce expenses, the company said it closed all five stores in its under performing Wisconsin market.
