Dallas, Texas 07/07/2015 (Financialstrend) – hhgregg, Inc.(NYSE:HGG), the electronics and appliance retailing major saw an upset opening on Monday, July 6, after a spectacular 5.8%, gain on July 2, 2015. The stock lost nearly 3.19% on Monday. On Thursday, the company had been among the largest of the gainers on the Russell 2000, gaining by nearly $0.17 per share.
hhgregg, Inc.(NYSE:HGG) fourth quarter earnings report on May was disappointing. It had reported losses much beyond expectations by analysts. It had in fact reported losses not for the quarter alone, but for the 2015 financial year as well. The losses were due to a significant loss in sales, its management had shared, at the time of announcing the earnings results.
hhgregg, Inc.(NYSE:HGG) retails nearly 350 models of appliances from consumers to digital products to furniture and mattresses. It also has a substantial fitness equipment segment as well. The appliance retailer engages in specialized display centers to showcase product features as well as functional spectrum of its products. It has over 228 stores, in United States markets.
The sales drop was nearly 9.8% in comparison to previous year, affected largely by the 10% drop in comparable store sales. In fact, the company saw a decline in sales across all of its categories in the last quarter of 2014. The most striking decline was in the devices and gadgets category, namely computers and tablets. Additionally, the company has strategically chosen to quit the mobile phone business which it was running based on a contract-business model, in the first quarter of 2015 financial year.
The drop in sales has impacted the stock market performance of hhgregg, Inc.(NYSE:HGG). Besides there is industry weakness as well, though HGG has done remarkable well in terms of sales of large- screen TVs and 4K ultra definition TVs. Additionally in the consumer electronics segment, there is a drop in demand for video products as well.
Therefore, volatility is expected to continue for HGG, through the fiscal. And true to character the stock had a good run on July 2, 2015 posting substantial gains. However, over the weekend and Monday, much of the gains were lost, besides a decline of 3.8% reported.