Thursday, specialty retailer of consumer electronics and home appliances hhgregg, Inc. (HGG) posted an increase in third-quarter profit from the year-ago, as revenues grew 20%.
Hhgregg's third-quarter profit rose 32.8% to $22.73 million from $17.12 million in the year-ago period. Earnings per share increased 9.6% to $0.57 from $0.52 last year, due to an increase in average shares outstanding from last year.
On an average, 15 analysts polled by Thomson Reuters expected earnings of $0.45 per share for the quarter. Analysts' estimates typically exclude one-time items.
Net sales increased 20.3% to $500.39 million from $416.10 million in the prior year period, above Street expectations of $466.49 million. The increase was due to the net addition of 19 stores in last 12 months, partially offset by a 0.2% decrease in comparable store sales.
Hhgregg's 0.2% decline in comparable store sales reflects continued weakness in consumer demand in the video category. The decrease in comparable store sales for the video category was due to a decline in average selling prices partially offset by an increase in units sold.
Net sales in the appliance category saw significant improvement across all categories, resulting in positive comparable store sales of 7.5%.
Gross profit margin decreased to 30.5% from 31.4% due to a reduction in appliance and video margin, coupled with a sales mix shift into lower margin categories.
Selling, general and administrative expenses increased to $92.71 million from $77.99 million, while net advertising expenses dropped to $17.18 million from $17.90 million last year.
For the nine month period, net income increased to $29.2 million or $0.78 per share from $22.6 million or $0.69 per share in the prior year period. Net sales rose 8.3% to $1.116 billion from $1.031 billion a year ago.
Looking ahead to the the full-year, the company reiterated its earlier guidance of $0.90 to $1.00 per share, on net sales growth of 6% to 9% and annual comparable store sales decline of 6% to 9%.
HGG closed Thursday's regular trading session at $18.94, down $1.41 or 6.93%, on a volume of 1.76 million shares on the NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.