Second-quarter sales for hhgregg’ fiscal year were up nearly 4%, but comparable store sales were off as continued concerns over the economy had a negative impact on consumer spending.
Net sales for the quarter ending September 30 were $332.2 million compared to $320.3 million in the same time period the previous year. According to the company, the increase in sales for the quarter was primarily attributable to the net addition of 15 stores during the past 12 months. Comparable store sales for the quarter were down 9.4%.
“We are pleased with our quarterly operating performance and our ability to drive growth in earnings and operating cash flow by preserving margins and managing expenses, all while continuing to add new stores,” said Dennis May, president/CEO of hhgregg. “While the overall environment remains challenging, we are encouraged by the improving traffic and sales trends we experienced throughout the quarter.”
May said the company continues moving forward with its store growth plans having identified 40 specific locations for new store openings in fiscal 2011. “Based on our current balance sheet position, we are confident we will have ample liquidity and internally generated capital to finance all of our fiscal 2011 expansion,” he added.
The retailer in late October opened two new locations; one in Memphis and one in Southaven, MS, the first hhgregg store in that state. The home electronics retailer now operates 126 stores in the Midwest and southern parts of the United States.