Back to top

Image: Bigstock

hhgregg Inc

Read MoreHide Full Article

hhgregg reported loss of $0.17 per share in the third quarter of fiscal 2016. The reported figure was narrower than the Zacks Consensus Estimate of a loss of $0.21 per share and the prior year quarter loss of $0.18. While sales and comparable store (comp) sales declined more than expected in the quarter, cost savings initiatives moderated losses in the quarter. Sales lagged the Zacks Consensus Estimate by 1.5% and decreased 10.9% year over year due to a decline in comps and competitive pressure in the appliance category. We are encouraged by hhgregg’s strategic initiatives to boost sales and profits. As a result of these initiatives, the company is generating positive EBITDA results since the past three quarters and expects to generate positive EBITDA in the fourth quarter as well. However, we believe that any sort of improvement will take time as the company is under a lot of pressure and facing volatility.

Published in