hhgregg Profit Drops to $5 Million
hhgregg said this week it posted a profit of $5 million for the last three months of 2013. This compares to $15.4 million the same period last year.
Net sales, meanwhile, dropped 11.6 percent to $707.1 million.
“As previously reported, our sales of consumer electronics and computing and wireless products were significantly below our expectations during the quarter,” Dennis May, CEO of hhgregg, said as part of the announcement.
The broad distribution of these categories across a variety of retail formats combined with the intensely promotional environment led to a challenging operating environment for hhgregg. While disappointed with the holiday industry trends, we took a balanced approach, choosing not to fully participate in the heavy promotional environment and proactively managing our inventory levels to match the product demand of our business.”