Hhgregg profit drops 20% in Q3
Indianapolis — Hhgregg reported Tuesday that net income for the quarter ended Sept. 30 dropped 20.4% to $3.9 million, compared with a net income of $4.9 million in the year-ago period.
The electronics and appliances retailer cited expenses associated with its Washington, D.C., market debut, as well as a dip in same-store sales, as partial reasons for the plunge.
Revenue surged 44.8% to $480.9 million in the period. Same-store sales decreased 1.5%, attributed to a weakness in appliance sales during the quarter.
Dennis May, president and CEO, said, “We entered the quarter on a strong note, with consumers responding very favorably to promotions and improving trends in the video category. As the quarter progressed, we saw a deceleration in both appliances and video sales.
“While the second quarter may be a reminder of the sensitive nature of the economic recovery and the consumer’s purchasing capacity, we continue to gain market share and remain excited about the company’s long-term growth prospects,” he added.
The retailer said it expects to open 35 to 45 stores in fiscal 2012, with the majority of those openings slated for Miami and western Pennsylvania.
Hhgregg currently operates 173 stores in Alabama; Delaware; Florida; Georgia; Indiana; Kentucky; Maryland; Mississippi; New Jersey; North Carolina; Ohio; Pennsylvania; South Carolina; Tennessee and Virginia.
Pier 1 feeling positive going into the holidays
FORT WORTH, Texas Pier 1 Imports reported that it continues to see positive trends with increases in traffic, conversion and average ticket for the first two months of the third quarter and believes the comparable-store sales increase for the third quarter ending Nov. 27 will be in a range of 8% to 10% compared with last year’s third-quarter comparable-store sales increase of 13.7%. Merchandise margins for the third quarter are expected to be approximately 58% of sales compared with last year’s third quarter merchandise margins of 56.6% of sales.
Alex Smith, president and CEO, said, “We are pleased with our strong September and October sales results, which are on top of strong sales last year. We believe this momentum will continue throughout the holiday selling season. As always, we are very diligent with controlling costs. However, to capitalize on and maintain the strong traffic and seek to maximize sales, we have added approximately $3 million of additional store payroll and marketing in the third quarter. We are upbeat on the start of our holiday selling season and look forward to the couple of months that lie ahead.”
Sears offers many ways to shop for the holidays
HOFFMAN ESTATES, Ill. Sears announced that it is offering new ways for customers to shop its popular Wish Book this holiday season.
“Wish Book makes holiday shopping easier, more convenient and provides a new social element for our customers,” said Imran Jooma, president of eCommerce for Sears Holdings. “While print and electronic versions of the Wish Book are still available, the new social version puts a twist on a time-treasured tradition. It’s your Wish Book, your way.”
According to Sears, customers can shop the Wish Book catalog the traditional way and take advantage of new quick response bar codes throughout the catalog which can be scanned to view more information on items through videos and product pages. Customers can also shop online by flipping through the digital version and clicking on items to make a purchase from the page. Or, shoppers can visit the Sears Facebook page to get holiday shopping ideas, share holiday wish lists and purchase products through the Wish Book tab. Sears has also launched a free Wish Book app that customers can use to find gifts through the new Trending Tree and Snow Globe features, as well as traditional means like gift finder and search and browse.