Hhgregg, a retailer of home appliances and consumer electronics, announced preliminary Q3 sales results ending Dec. 31, 2013. The retailer reported net sales of $799.6 million for 2013, and estimates net sales to drop to $707.1 million in in Q3 2014, an 11.6% year-over-year total.
Q3 comparable store sales are estimated to have dropped approximately 11.2%. Sales categories that decreased include consumer electronics (19.7%) and computing and wireless, which plunged approximately 24.5%. The appliance and home products categories each increased by 1.5% and 36.1%, respectively.
“Our sales of consumer electronics and computing and wireless products were significantly below our expectations during the quarter,” said Dennis May, President and CEO of hhgregg. “Our third fiscal quarter, while solidly profitable, is expected to be materially below both our expectations and prior year for diluted earnings per share, driven by the net sales miss. Our holiday sales were significantly impacted by increased promotional offerings of televisions and tablet products across a variety of retail formats.”
All figures are preliminary and are subject to change. According to a company press release, hhgregg expects to “reassess and update its annual earnings… as part of its full earnings release” scheduled for Jan. 30, 2014.