Hhgregg Rides Ultra HD’s Surge to Improved CE Same-Store Sales Performance
Ultra HD accounted for half of hhgregg’s TV sales in Q2 ended Sept. 30, up from 41 percent in Q1, CEO Dennis May said on a Thursday earnings call. “As we go into the holiday period and beyond, we expect…
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this mix to continue to increase to 60 percent.” The increasing mix of Ultra HD TVs commanding higher average selling prices helped hhgregg improve its Q2 performance in the CE category to a 6.3 percent same-store sales decline from an 8.3 percent decline in Q1, the company said. “Our focus on 4K TV, the connected home and appliances has set us up to win this holiday season,” May said. “Our stores are ready.” For hhgregg, “the premium segment of the TV business is driving 100 percent of that improvement,” May said in Q&A. It's not just 4K technology that's spurring premium TV sales, but also “significant” demand for curved screens, and OLED, which is “starting to get some traction,” May said. “As we think about that going into the holiday season, we see that mix continuing to shift up.” The chain has been “really pleased across the board with our supply-chain initiatives,” May said. “We have a plan to flow our CE inventory this holiday season. We don’t anticipate any hiccups around availability.”