Hhgregg, Inc. Provides Preliminary Sales Guidance for the Third Fiscal Quarter Ended December 31, 2015 and Earnings Guidance for the Fiscal 2016; Expects Asset Impairment for the Third Quarter Ended December 31, 2015
January 06, 2016 at 07:00 am EST
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hhgregg, Inc. provided preliminary sales guidance for the third fiscal quarter ended December 31, 2015 and earnings guidance for the fiscal 2016. For the third fiscal quarter of 2016, the company estimates net sales to be approximately $593 million, a decrease of approximately 11% as compared to net sales of $666 million reported for the third fiscal quarter of 2015. Third fiscal quarter comparable store sales are estimated to have decreased approximately 11%, with the appliance category estimated to have decreased approximately 10%, the consumer electronics category estimated to have decreased approximately 8%, the home products category estimated to have increased approximately 3%, and the computer and tablet category estimated to have decreased approximately 35%.
The company remains confident, in line with prior expectations, that will generate positive adjusted EBITDA for the fiscal year 2016.
The company expects to incur a non-cash charge for asset impairment of certain locations in the quarter ended December 31, 2015. The impairment charge is based on current trends in certain under-performing markets and the lack of visibility to the recoverability of the assets associated with those locations. The company expects the impact of this non-cash pre-tax charge to be $15 million to $25 million and is currently in the process of finalizing that determination.
hhgregg, Inc. is an online retailer that operates a retail chain of consumer electronics and home appliances in the Midwest, Northeast, and Southeast United States, which operates stores in approximately 20 states. The Company offers a range of products categories, which include mobiles, computers and office, cameras and video, electronics, pro audio, home and kitchen. Its mobile products include cellphones and accessories, and wearable technology. Its computer products include desktops, laptops, hardware, telephones, and office accessories. The Companyâs electronics products include global positioning systems (GPS) and auto, television, home theater, audio headphones, and gaming. Its pro audio products include microphones, pro headphones, studio recording, audio systems, speakers, audio components, portable audio, and musical instruments. Its home and kitchen products include kitchen utensils, luggage, and bags. It offers global and local brands across the nation through hhgregg.com.
Hhgregg, Inc. Provides Preliminary Sales Guidance for the Third Fiscal Quarter Ended December 31, 2015 and Earnings Guidance for the Fiscal 2016; Expects Asset Impairment for the Third Quarter Ended December 31, 2015