Friday November 1st, 2013 - 12:05PM
hhgregg, Inc. has reported net income of $3.7 million for the three-month period ended September 30, 2013, compared with net income of $3.8 million for the comparable prior year period. The decrease in net income for the company’s second quarter was largely due to a comparable store sales decrease of 6.2%, partially offset by a decrease in SG&A as a percentage of net sales. Net sales for the three months ended September 30, 2013 decreased 3.3% to $568.3 million from $587.6 million in the comparable prior year period.
The decrease in comparable store sales for the second quarter was driven primarily by a decrease in comparable store sales in the consumer electronics and computing and wireless categories, partially offset by an increase in the appliance and home products categories. The home products category increase in comparable store sales was primarily a result of sales from the introduction of furniture and fitness equipment, the company said.
"Though we continue to see headwinds in our consumer electronics business, we are pleased with our ninth consecutive quarter of comparable store sales increases in the appliance category. Additionally, we are pleased with the completion of our sales floor reset and the progress made with our other initiatives aimed at the long term success of transforming our retail strategy,” said Dennis May, president and CEO of hhgregg. “We have continued to make investments in our business, including the expansion of our consumer credit capabilities, with a seamless secondary credit option, and enhancements to our website. While pleased with our early efforts in reshaping our sales mix, our sales performance continues to demonstrate that this transition will take time as we introduce new products to offset the sales losses from the consumer electronics category.”
For the six month period ended September 30, 2013, the company reported net income of $2.4 million compared with a net loss of $1.9 million for the comparable prior-year period.
The increase in net income for the six-month period ended was largely the result of an increase in net sales due to the net addition of five stores during the past 12 months, a decrease in SG&A expense as a percentage of net sales and a decrease in net advertising as a percentage of net sales, partially offset by a decrease in gross profit as a percentage of net sales.