Indianapolis – Hhgregg Inc. cited extreme weather as a major factor in preliminary sales declines it reported for the fourth quarter of fiscal 2014. The retailer estimates net sales to be approximately $538.3 million, a decrease of approximately 9.9% as compared to net sales of $597.6 million reported for the fourth fiscal quarter of 2013.
Fourth fiscal quarter comparable store sales are estimated to have decreased approximately 9.9%. In addition to severe weather, during the quarter Hhgregg also decided to exit the contract-based mobile phone business.
“We faced a number of headwinds during the quarter, which led to disappointing financial results,” said Dennis May, president and CEO. “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. While we are disappointed in our preliminary results, we remain focused on executing our strategic initiatives to transform the business by refining our merchandise assortment, improving our customer shopping experience, expanding our credit offerings and enhancing our service capabilities.”
Looking ahead, Hhgregg expects net sales of approximately $2.4 billion for the full fiscal year 2014. The retailer also expects a renewed interest in the video category due to innovation in TVs, and will shift from carrying one furniture brand to five furniture brands by early summer 2014.