Hhgregg Inc. (HGG) cut its fiscal-year earnings forecast for the
second time as it warned it expects to report third-quarter sales
that fall short of analysts' expectations.
The regional appliance and electronics retailer has expanded its
physical presence lately, especially in the mid-Atlantic states,
often by taking advantage of store space left vacant by the closure
of Circuit City Stores Inc. (CCTYQ). Thursday, it said it plans to
enter the Chicago market.
Hhgregg has seen earnings pressured by the store openings as
well as higher advertising costs in recent quarters. In November it
had lowered the year view as it reported its fiscal second-quarter
profit dropped more than analysts expected.
Thursday, it cut its fiscal-year earnings-per-share prediction
to $1.15 to $1.23 from its previous view of $1.30 to $1.45.
For the quarter ended Dec. 31, the company estimated net sales
rose 31% from a year earlier to $653.7 million. Analysts polled by
Thomson Reuters most recently predicted $694 million.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com