HHGregg’s latest loss still beats Wall Street expectations

HHGregg Inc. reported a loss in its fiscal first quarter as the Indianapolis-based appliances and electronics retailer saw sales slide in nearly every product category.

The company said Friday morning that it lost $8.8 million, or 32 cents per share, for the period ended June 30. That compares with a larger loss of $10.3 million, or 36 cents per share, in the same quarter of 2014.

The latest results beat analyst expectations by 3 cents.

Quarterly revenue fell 6.6 percent, to $441.1 million. Analysts had expected revenue of $446 million.

In mid-morning trading, HHGregg shares were up nearly 21 percent, to $4.22 each. Even so, the stock is down about 44 percent this year.

Quarterly sales for HHGregg store locations open at least a year—a key metric in retailing known as comparable-store sales—declined 6.3 percent.

“While comps were still negative in the first fiscal quarter, we saw a positive sequential improvement in our sales and traffic trend despite a significant reduction in our advertising expense,” HHGregg CEO Dennis May said in a statement. “Though we were pleased with the traction of the transformation initiatives, we still have a lot of work in front of us.”

Comparable-store sales fell in almost every product category. Appliance sales dipped 2.2 percent; consumer electronics decreased 8.3 percent; and computers dropped 42 percent. The company posted a 12.1-percent increase in home products, primarily consisting of furniture and mattresses.