At hhgregg, CEO addresses headwinds

Dennis May

Dennis May, president and CEO of Indianapolis-based appliance and home products retailer hhgregg, said he remains excited about the current fiscal year, despite the company’s $7.2 million net loss for the three months ended March 21.

“As we discussed in our prerelease, we faced a number of headwinds during the quarter, which led to disappointing financial results. In addition to continued volatility in the consumer electronics business, extreme weather in January, February and the beginning of March negatively impacted traffic and operating performance in the majority of our stores, particularly those located in the Midwest and Mid-Atlantic regions, where the weather was the most severe,” May said. “Despite these challenges, the company was able to report a comparable sales increase in its appliance category, which marked its 11th consecutive quarter of comparable-store sales increases in the appliance category."

Net sales for the three- and 12-month periods decreased 9.9% and 5.5%, respectively, to $538.3 million and $2.3 billion, as compared with the same periods in the prior year.

"Despite the challenges of last year, we are excited about the current fiscal year and our opportunity to transform our business through a number of strategic initiatives. During the fiscal year, we will focus on redefining our sales mix, enhancing and differentiating our customer experience, expanding our e-commerce capabilities and launching new customer facing technologies. We believe our responsibility is to inspire and delight our customers with a truly differentiated purchase experience to help bring their homes to life. In doing so, we will improve our financial and operating results, and will solidify our brand relevance within the marketplace.”

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