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UPDATE 1-Hhgregg holiday sales miss, cuts outlook
February 8, 2011 / 12:26 PM / in 7 years

UPDATE 1-Hhgregg holiday sales miss, cuts outlook

* Q3 EPS $0.66 vs Street view $0.64

* Same-store sales down 6.2 pct

* Sales rise 30.6 pct to $653.7 mln, misses estimates

* Cuts full-year profit outlook

NEW YORK, Feb 8 (Reuters) -Hhgregg Inc HGG.N reported weaker-than-expected quarterly sales, hurt by tepid demand for pricier televisions and appliances in the key holiday selling season, prompting the U.S. electronics chain to slash its fiscal 2011 outlook.

Sales in the third quarter ended Dec. 31 rose 30.6 percent to $653.7 million, but missed the analysts’ average forecast of $654.6 million. Sales at stores open at least a year fell 6.2 percent.

The company, which had warned about the sales weakness in January, said its third-quarter net income rose to $26.9 million, or 66 cents a share, from $22.7 million, or 57 cents a share, a year earlier.

Analysts on average were expecting 64 cents a share, according to Thomson Reuters I/B/E/S.

For fiscal 2011, the company now sees net income of $1.10 a share to $1.15 a share, down from its prior outlook of $1.15 to $1.23 a share.

“Industry sales from newer technologies like LED and 3D TV increased less than expected,” Chief Executive Dennis May said in January. (Reporting by Dhanya Skariachan, editing by Gerald E. McCormick)

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