HH Gregg Reports 24% Drop in Quarterly Sales

January 10, 2017  by Larry Thomas in Financial Reports, Industry   

The retailer said electronics sales took the biggest hit, falling an estimated 39%. Appliance sales were down about 4%, while sales in the home products category, which includes furniture, fell about 9%.

Comparable-store sales fell an estimated 22% in the quarter, the company said.

“During the quarter, we were challenged by the competitive pressures in the market, specifically in consumer electronics as it is a larger mix of our business during the holidays,” said Robert Riesback, president and CEO. Our transition to a new distribution center also had a temporary negative impact on our sales for the quarter.

“Although we are disappointed with our overall performance during the quarter, we are pleased with our investments made to shift our focus from consumer electronics to appliances and furniture, through resetting store layouts, adding Fine Lines departments and promotions focused on our appliance business. The consumer electronics category was very competitive again this holiday season. We made the strategic decision to compete less in this category, particularly at the entry level price points.”

The retailer said it plans to release complete financial results for the quarter on Jan. 26. The final numbers will include a non-cash impairment charge of $7 million to $12 million, said Kevin Kovacs, senior vice president and chief financial officer.