Hhgregg 2Q Profit Rises As New Stores Help Sales

INDIANAPOLIS (AP) — Hhgregg Inc. said Thursday its second-quarter profit jumped 46 percent as the appliance and electronics retailer opened seven new stores and spent less on advertising.

For the quarter ended Sept. 30 the company earned $4.9 million, or 13 cents per share, compared with $3.4 million, or 10 cents per share, in the year-earlier period.

Analysts polled by Thomson Reuters expected, on average, earnings per share of 7 cents.

Sales edged higher to $332.2 million from $320.3 million, better than the $324.5 million Wall Street expected.

The company said sales rose primarily from adding new stores, which offset a 9.4 percent decline in sales at stores that have been open at least one year.

Sales at stores open at least a year are a key measure of retailer performance because they measure growth at existing stores rather than from newly opened ones.

Advertising expenses fell as the company benefited from lower advertising rates. It also had higher advertising expenses in the prior-year period due to the launch of new markets in Florida. That created an easier comparison to last year's results.