hhgregg Inc. (NYSE:HGG) reported net income above Wall Street’s expectations for the second quarter. Net income for hhgregg Inc. rose to $6 million (16 cents per share) vs. $3.9 million (10 cents per share) in the same quarter a year earlier. This marks a rise of 53.1% from the year earlier quarter. Revenue rose 28.6% to $618.6 million from the year earlier quarter. HGG beat the mean analyst estimate of 6 cents per share. It beat the average revenue estimate of $539.6 million.
Dennis May, President and Chief Executive Officer of the Company, commented, “We were pleased with our overall results during the quarter and our ability to deliver strong growth in both net sales and net income per diluted share. During the quarter, our strategic initiatives began to gain traction and generate favorable results. We launched our new website, gained market share in appliances, and expanded our assortment in the home office category, all while successfully opening 24 new stores in the Chicago and Miami markets. Additionally, we drove customer traffic and market share gains through increased promotional activity, primarily in the video category. While this resulted in pressure on our gross margin performance in the video category, this approach enabled us to generate positive comparable store sales.”
Competitors to Watch: Best Buy Co., Inc. (NYSE:BBY), CONN’S, Inc. (NASDAQ:CONN), RadioShack Corporation (NYSE:RSH), GameStop Corp. (NYSE:GME), Systemax (NYSE:SYX), Funtalk China Hldgs. Ltd. (NASDAQ:FTLK), Costco (NASDAQ:COST), BJ’s Wholesale (NYSE:BJ), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Apple (NASDAQ:AAPL), Sears Holdings (NASDAQ:SHLD) and Amazon.com (NASDAQ:AMZN).
Systemax Inc. (NYSE:SYX) reported its results for the third quarter. Net income for Systemax Inc. rose to $10.6 million (29 cents per share) vs. $8.6 million (23 cents per share) in the same quarter a year earlier. This marks a rise of 23.3% from the year earlier quarter. Revenue rose 4.5% to $901.2 million from the year earlier quarter. SYX fell short of the mean analyst estimate of 35 cents per share. Analysts were expecting revenue of $918.2 million.
Richard Leeds, Chairman and Chief Executive Officer, said, “I am pleased with our top line performance, which continues to be driven by our business-to-business channels and specifically our Industrial Products group, which posted a 28% revenue increase. Our retail stores delivered another solid quarterly performance; however, our consumer related sales remain challenging, particularly on the web. During the quarter we effected decisions to increase gross margins, which contributed to our 120 basis point improvement in consolidated gross margin. We also remain focused on improving our operating cost structure and are pleased with the initial results of our initiatives, which are just starting to flow through our results and contributed to our 70 basis point improvement in consolidated operating margin. Our efforts in this regard are ongoing and focused on driving inventory efficiencies, the optimization of our distribution centers and information technology investments.”
Competitors to Watch: Best Buy (NYSE:BBY), PC Mall, Inc. (NASDAQ:MALL), PC Connection, Inc. (NASDAQ:PCCC), Gaiam, Inc. (NASDAQ:GAIA), BIDZ.com, Inc. (NASDAQ:BIDZ), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), hhgregg inc. (NYSE:HGG), Stamps.com Inc. (NASDAQ:STMP), Bluefly, Inc. (NASDAQ:BFLY), Overstock.com, Inc. (NASDAQ:OSTK), Amazon.com (NASDAQ:AMZN), eBay (NASDAQ:EBAY), U.S. Auto Parts Network, Inc. (NASDAQ:PRTS), and ValueVision Media, Inc. (NASDAQ:VVTV).