hhgregg Loss Deepens

hhgregg shares have been down around 20 percent in pre-market trading on the Bloomberg report.

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Indianapolis-based hhgregg Inc. (NYSE: HGG) is reporting a fiscal third quarter net loss of $58.3 million, compared to a loss of $26.9 million during the same period the previous year. Chief Executive Officer Robert Riesbeck says the company was challenged by competitive pressures in the market.

Riesbeck says the pressures were especially seen in the consumer electronics sector. He adds the consolidation of two existing distribution centers into one existing center created a temporary negative impact on sales, to the tune of $20 to $25 million.

"Although we are disappointed with our overall performance during the quarter, we are pleased with our investments made to shift our focus to appliances and furniture, through resetting store layouts, adding Fine Lines departments and promotions focused on our successful appliance business," said Riesbeck. "Going forward, we will continue our focus on our appliance and home products categories and will continue to reposition our consumer electronics business to focus on the premium models."

Riesbeck said hhgregg is correcting the issues at its new distribution center and its new assortment of home products will see a full rollout during the fiscal fourth quarter. He says they expect to improve the company’s results through those initiatives and additional cost reductions.