hhgregg Posts $7.2 Million Loss
hhgregg Tuesday announced a loss of $7.2 million in the fourth quarter, which compared with a profit of $9.9 million the same time the year before.
The company had warned during a pre-release of sluggish numbers. In the quarter, net sales dropped 9.9 percent.
“As we discussed in our pre-release, we faced a number of headwinds during the quarter, which led to disappointing financial results,” CEO Dennis May said as part of the earnings release. ” In addition to continued volatility in the consumer electronics business, extreme weather in January, February and the beginning of March negatively impacted traffic and operating performance in the majority of our stores, particularly those located in the Midwest and Mid-Atlantic regions, where the weather was the most severe.
“Despite these challenges, the Company was able to report a comparable sales increase in its appliance category, which marked its 11th consecutive quarter of comparable store sales increases in the appliance category.”