UPDATE 1-Hhgregg Q1 profit beats Street, reaffirms outlook
* Q1 EPS $0.04 vs est $0.03
* Q1 same-store sales down 14.7 pct
* Q1 revenue down 3.7 pct at $284.4 mln
* Reaffirms FY10 EPS outlook at $0.85-$1.00
* Says capex to range between $45 mln and $50 mln for FY10
Aug 7 (Reuters) - Regional electronics and appliance retailer hhgregg Inc (HGG.N) posted a smaller first-quarter profit but beat market estimates by a cent as a decline in advertising costs partially offset a decline in gross margins, and reaffirmed its full-year outlook.
Gross margin for the quarter declined 85 basis points, but was mitigated by a fall of 79 basis points in net advertising expense as a percentage of sales.
For the quarter, the company which operates under the names hhgregg and Fine Lines, posted a net income of $1.5 million, or 4 cents a share, compared with $2.1 million, or 6 cents a share, last year.
Net sales fell 3.7 percent to $284.4 million.
Same-store sales fell 14.7 percent, reflecting weakness in demand in the appliance and video categories, as the turmoil in the housing market and the worst recession since the Great Depression kept consumers away.
Analysts on average were expecting the Indianapolis-based company to earn 3 cents a share on revenue of $285.71 million, before special items, according to Reuters Estimates.
For the fiscal year ending March 31, 2010, the company reaffirmed its earnings per share outlook at 85 cents to $1 per share and said it continued to see same-store sales declining 7 to 12 percent.
Analysts were expecting the company to earn 93 cents a share, before items.
Shares of the company, which competes with Best Buy Co Inc (BBY.N) and Sears Holding Corp (SHLD.O) closed at $19.59 Thursday on the New York Stock Exchange. (Reporting by Abhishek Takle in Bangalore; Editing by Jarshad Kakkrakandy)
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