hhgregg Profit Drops
hhgregg reported that first-quarter profits dropped 29 percent and sales decreased four percent to $284.4 million from $295.4 million, missing Wall Street's estimate of $286.4 million.
Same-store sales dropped 14.7 percent, mainly due to poor appliance and video sales. Net income per diluted share decreased to $0.04 or $1.5 million, from $0.06 or $2.1 million. The company reaffirmed $0.85 to $1.00 net income per diluted share in 2010.
The company said the decrease in appliance sales was due to double-digit comparable store unit sales declines of most major appliance products. Three-door refrigeration and certain high-efficiency laundry products gained modest increases and contributed to higher average selling prices.