Profit Drop For hhgregg

hhgregg Wednesday reported a third quarter profit of $22.5 million, a drop from the $26.9 million figure the same period the year before. The company attributed the performance to lower margins and increased spending on advertising.

Sales in the quarter rose 26.9 percent to $829.5 million.

“While pleased with our overall comparable store sales increase of 3.9% and market share gains during the third fiscal quarter, we were disappointed with the macro trends across the video category,” CEO Dennis May said in a statement.

“However, management continues to be pleased with the traction the Company is gaining around its fiscal 2012 initiatives. In particular, our initiatives to gain market share in the appliances category and to grow our home office category sales have produced favorable results.

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