hhgregg (HGG) Posts Q4 Loss of 47c/Share

hhgregg (NYSE: HGG) reported Q4 EPS of ($0.47), $0.23 worse than the analyst estimate of ($0.24). Revenue for the quarter came in at $485.6 million versus the consensus estimate of $515.4 million.

Comps fell 10 percent.

Dennis May, President and Chief Executive Officer, commented, “Our fourth quarter results were challenging, however, I am pleased with the significant progress we have made on our transformational efforts. Our top fiscal 2016 initiatives are centered on improving our cost structure through the optimization of our marketing dollars, the reduction of our operating expenses and more efficiently managing our working capital, along with reversing our negative sales trends.” May continued, “On the expense side, we have identified over $50 million of savings. These savings are inclusive of both marketing and operating expenses. We plan to reduce and re-invest advertising dollars to more effective channels, further reducing our reliance on print media. Additionally, we have identified several areas throughout the company where we believe we can be more efficient with our spend. In addition to operating expenses, we will also be working to selectively rationalize our footprint and work to free up working capital through inventory optimization. From a top-line perspective, we will continue to expand our Fine Lines departments within the appliance category given the strong results we are seeing from our Fine Lines business, continue to focus on sales of larger screen 4K TV’s, and continue to refine our offerings within our other categories. We remain confident that through the combination of our savings and revenue initiatives, we will return to positive adjusted EBITDA in fiscal year 2016.”

For earnings history and earnings-related data on hhgregg (HGG) click here.

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