HHGregg, Inc. Earnings Cheat Sheet: Opens 26 New Stores

HHGregg, Inc. (NYSE:HGG) reported its results for the first quarter. HHgregg, Inc. is a specialty retailer of consumer electronics, home appliances and related services operating under the name hhgregg.

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HHGregg Earnings Cheat Sheet for the First Quarter

Results: Swung to a loss of $761,000 (2 cents per diluted share) in the quarter. HHGregg, Inc. had a net income of $2.7 million or 7 cents per share in the year earlier quarter.

Revenue: Fell 1% to $431.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HGG was about in line with expectations as the mean analyst estimate was breaking even. It fell short of the average revenue estimate of $478.7 million.

The company also repurchased approximately 1.5 million shares of its common stock for $22.1 million under its stock repurchase program.

Quoting Management: Dennis May, President and Chief Executive Officer of the Company, commented, “As expected, our fiscal first quarter was a challenging period. We faced the lapping of last year’s appliance stimulus program, the grand opening sales from 26 new stores during Q1 last year and our most difficult comparable store sales comparisons in the past 11 quarters. Despite these difficult comparisons, strong inventory management allowed us to reduce inventory per store by nearly 9%. Our new stores continue to open strong and our new store sales productivity continues to be over 100%.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the first quarter of the last fiscal year, which saw revenue rise 53.3%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 10 cents, and in the third quarter of the last fiscal year, it was ahead by one cent.

HGG’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $14.6 million in the fourth quarter of the last fiscal year, a profit of $26.9 million in the third quarter of the last fiscal year and $3.9 million in the second of the last fiscal year.

Margins contracted in the fourth quarter of the last fiscal year after expanding the quarter before. Gross margin fell 0.2 percentage point to 30.2% from the year earlier quarter. In the third quarter of the last fiscal year, the figure rose 0.9 percentage point to 31.5% from the year earlier quarter.

Competitors to Watch: Best Buy Co., Inc. (NYSE:BBY), CONN’S, Inc. (NASDAQ:CONN), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Systemax (NYSE:SYX), RadioShack Corporation (NYSE:RSH), GameStop Corp. (NYSE:GME) and Funtalk China Hldgs. Ltd. (NASDAQ:FTLK).

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(Source: Xignite Financials)

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