FINANCE

Hhgregg net income, sales plummet in Q3

BY Dan Berthiaume

Indianapolis – Hhgregg reported net income of $5 million during the third quarter of fiscal 2014, a 71% drop from $17.4 million in the same period the previous fiscal year. Net sales declined about 12%, from $799.6 million to $707 million.

Same-store sales decreased about 11%. Hhgregg cited the drop in same-store sales and shrinking gross margins for its steep decline in net income. Dennis May, president and CEO of Hhgregg, blamed poor electronics/computing sales and heavy promotions for the retailer’s overall disappointing performance.

“As previously reported, our sales of consumer electronics and computing and wireless products were significantly below our expectations during the quarter,” said May. “The broad distribution of these categories across a variety of retail formats combined with the intensely promotional environment led to a challenging operating environment for Hhgregg. While disappointed with the holiday industry trends, we took a balanced approach, choosing not to fully participate in the heavy promotional environment and proactively managing our inventory levels to match the product demand of our business.”

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FINANCE

Destination Maternity net income rise, sales drop in Q1

BY Dan Berthiaume

Philadelphia – Destination Maternity reported improved net income but lower net sales during the first quarter of fiscal 2014 as compared to the same period a year earlier. Net income totaled $4.25 million, up 11% from $3.84 million the same period a year earlier.

However, net sales dipped slightly from $135.3 million to $134.8 million. Destination Maternity said the slight decrease in sales for the first quarter of fiscal 2014 compared to fiscal 2013 resulted primarily from decreased sales related to the company’s continued efforts to close underperforming stores, substantially offset by a 0.7% increase in same-store sales. The net sales of $134.8 million for the first quarter were slightly below the low end of the company’s guidance range of $135 to $139 million provided in November 2013.

Looking ahead, Destination Maternity forecasts net sales in the $539 million to $550 million range, representing a projected sales change of between a decrease of 0.2% and an increase of 1.8%, compared to fiscal 2013 net sales of $540.3 million. This sales guidance range is based on a projected same-store sales increase of between 1% and 3%

“Our sales for the quarter were somewhat weaker than planned, reflecting the continued challenging overall economic environment which affected many retailers in the recent holiday shopping season,” said Ed Krell, CEO. “Although our sales for the quarter were slightly below the low end of our expected sales range, it represents our sixth consecutive quarter of achieving a same-store sales increase, showing the continued progress we have made with our sales initiatives, while maintaining strong operational and expense discipline.

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FINANCE

Rite Aid same-store sales rise 1.8% in January

BY Dan Berthiaume

Camp Hill, Pa. – For the four-week period ended Jan. 25, Rite Aid’s same-store sales grew 1.8%. Front-end same-store sales decreased 1.3%, attributable to a decrease in flu-related over-the-counter drug sales.

Total drug sales for the month increased 1.5% to $1.94 billion, compared to $1.91 billion in the same period a year earlier.

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