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hhgregg Inc

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hhgregg reported wider-than-expected loss in the second quarter of fiscal 2017. Sales also lagged the Zacks Consensus Estimate. Adjusted loss of $0.51 per share was wider than the prior-year quarter loss of $0.35, due to a decline in sales, lower comparable store sales (comps) and decline in consumer electronics gross margin. The fall in comps was wider than both the preceding quarter and the prior-year quarter, due to continued decline in the consumer electronics segment. The company also posted EBITDA loss in the quarter, after generating positive EBITDA results since the past five quarters owing to initiatives. While these initiatives are expected to revive the consumer electronics category in the long term, the segment will continue to witness a downtrend as a percentage of total sales over the near term, as the company is under a lot of pressure and facing volatility.

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