HHgregg not looking good heading into holidays
HHgregg 's CEO says the company is on track to meet key financial objectives even though it posted negative same store sales growth and a larger loss in the second quarter.
The electronics retailer reported that for the second quarter ended Sept. 30, same store sales decreased 3.5%. Net sales decreased 3.8% to $487 million compared to prior year second quarter. And the company's net loss was $10.1 million, or 37 cents per share, compared with a loss of $10.4 million, or 37 cents per share, in the same quarter of 2014. Revenue dropped to $486.9 million, down 3.8 percent from $505.9 million in the year-ago period.
“We remain on track to meet or exceed our three key financial objectives for the year, which are focused on driving improvements for comparable store sales, cost savings and positive EBITDA for the fiscal year," said Dennis May, president and CEO. "We were pleased with the continued traction in our net sales during the second quarter driven by delivering on our fiscal 2016 revenue generation initiatives. In addition, we have continued our cost savings efforts and remain on track to meet our plan to save $50 million in fiscal 2016. The steady progress we have made with our transformation plan has positioned our company well as we embark on the holiday season."
Hhgregg did announce it is starting its Black Friday sale early. The store is offering up to 35% off appliances storewide and the opportunity to receive up to $500 off appliances purchases of $397 and up.
Among the early offers are:
Lg 4 CU. Ft. Front-Load Washer - $499.99, save $300
Samsung 26 CU. Ft. Stainless Steel French Door Refrigerator - $999.99, save $800
Whirlpool. 4.3 CU Cabrio HE Top-Load Washer - $399, save $200
Samsung 7.4 Cu. Ft. Platinum activewash Silver Stream Electric Dryer - $749, save $450
GE 24 inch slate dishwasher - $599.99, save $200
Keurig 2.0 Black K250 Brewing System - $119.99
Ninja Nutri Pro Blender - $119.99
Samsung 50" 1080p Smart HDTV - $749, save $450
Toshiba Touchscreen Laptop - $499
Southern Motion Black Celebrity Media Chair - $499, save $300
Hhgregg currently has 227 stores in 20 states.