Hhgregg Slipped to Underperform - Analyst Blog
12 10월 2011 - 2:31AM
Zacks
Following the first quarter 2012 earnings, we are downgrading
our recommendation on Hhgregg, Inc. (HGG) to
Underperform from Neutral.
Hhgregg posted first-quarter 2012 net loss of 2 cents per share,
which was below the Zacks Consensus Estimate of a break-even as
well as the year-ago quarter earnings of 7 cents. The loss
reflected a 13.2% drop in comparable store sales with an increase
in SG&A expenses.
Moreover, Hhgregg’s top line inched down 1.0% to $431.5 million
during the quarter. Gross margin, based on net sales went down 16
basis points to 30.2% in the quarter, resulting from the shift
within the net sales mix of the company’s product categories.
Net sales mix has continued to shift from ‘video’ category to
‘appliance’ and ‘home office’ categories due to continued industry
weakness. The decline in video category’s sales was attributable to
double-digit decline in average selling prices as well as a slight
decrease in unit demand. The improvement in comparable store sales
for the home office category was due to an increased offering of
computers and tablets along with associated peripherals.
Going forward, we also expect net sales and operating margin to
remain muted owing to the seasonal shopping patterns, rising costs
and competitive pressures.
Although Hhgregg has taken many strategic initiatives to boost
its performance, including the expansion of its better performing
home office category, mix shift toward high margin appliances
category and launch of its redesigned e-commerce site, we believe
that the consumer electronics and appliance industry exhibits high
competition and is concentrated among a group of major
retailers.
Hhgregg stores compete with consumer electronics retailers,
specialty home office retailers, mass merchants, home improvement
superstores and a number of direct-to-customer alternatives. The
aggressive competition may weigh upon the sales and margins of the
company. Hhgregg further faces stiff competition from
Wal-Mart Stores, Inc (WMT) and Best Buy
Co. Inc. (BBY) and it currently holds a Zacks #5 Rank,
which implies a short-term Strong Sell rating.
HHGREGG INC (HGG): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis Report
Zacks Investment Research
HHGREGG (CE) (USOTC:HGGGQ)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
HHGREGG (CE) (USOTC:HGGGQ)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024