Hhgregg estimates 12% net sales drop in Q3
Indianapolis — For the third fiscal quarter of 2014, Hhgregg estimates net sales to be approximately $707.1 million, a decrease of approximately 11.6% as compared to net sales of $799.6 million reported for the third fiscal quarter of 2013.
Third fiscal quarter same-store sales are estimated to have decreased approximately 11.2%, with the appliance category expected to have increased approximately 1.5%, the consumer electronic category expected to have decreased approximately 19.7%, the computing and wireless category expected to have decreased approximately 24.5%, and the home products category expected to have increased approximately 36.1%.
Dennis May, president and CEO of Hhgregg, said poor performance in the consumer electronics and wireless categories led to the third quarter coming in below the company’s expectations. Hhgregg now expects its full fiscal year performance to miss previously stated guidance.
“Our sales of consumer electronics and computing and wireless products were significantly below our expectations during the quarter,” said May. “Our third fiscal quarter, while solidly profitable, is expected to be materially below both our expectations and prior year for diluted earnings per share, driven by the net sales miss. Our holiday sales were significantly impacted by increased promotional offerings of televisions and tablet products across a variety of retail formats. While we are disappointed with these sales results, we made the strategic decision during the quarter not to fully participate in the heavily promotional environment. We did manage our inventory and liquidity position well, with total inventory per store below prior year levels.”
Hhgregg will provide additional information regarding its quarterly results and will update full year guidance when it reports its third fiscal quarter results on Jan. 30.
Report: Zappos overhauls management structure
Las Vegas – Zappos is reportedly instituting a radical overhaul of its management structure that will eliminate traditional managers and flatten the corporate hierarchy, even eliminating internal job titles. According to the Washington Post, this management structure is known as a “holacracy.”
Holacracy is designed to create overlapping circles of self-governing employees, giving workers more autonomy. Employees typically belong to several circles and while there are designated employees that assign tasks, each circle collaboratively makes decisions about how tasks should be completed. There is still some corporate structure and employees are still held accountable for their performance.
Zappos currently has 10% of its employees working in the new holacracy system and reportedly intends to move all employees into the new structure by the end of 2014.
Report: Bezos suffers New Year’s Day kidney stone attack
Seattle – Jeff Bezos, founder and CEO of Amazon.com, reportedly had to be flown from the Galapagos Islands in Ecuador on Jan. 1, 2014 for emergency treatment of a kidney stone attack. According to NBC News, the Ecuadorian navy flew Bezos by helicopter from a cruise ship to his private jet, which then took him to the U.S. treatment.
Amazon.com sources indicated that Bezos did not require surgery and is doing well.