) reached a new 52-week high of $19.99 on Sep 11 and eventually
closed at $19.40, reflecting a year-to-date return of 166.9%. The
Zacks Rank #1 (Strong Buy) stock beat its previous 52-week high
of $19.41 attained on Aug 26.
Shares of this appliances and electronic retailer have been
riding high ever since it reported impressive first quarter
fiscal 2014 results on Aug 5. The continued momentum in the
shares is due to the company's strategic initiatives, which
pulled the company out from persistent weakness. The company's
long-term estimated EPS growth rate is 14%. Average volume of
shares traded over the last three months came in at approximately
hhgregg reported a loss of 4 cents per share in the first
quarter of fiscal 2014, narrower than the prior-year quarter loss
of 16 cents per share. The reported loss was also narrower than
the Zacks Consensus Loss Estimate of 15 cents per share. The
narrower loss was driven by positive comps, cost savings and
lower share count.
hhgregg's net sales beat the Zacks Consensus Estimate and
climbed 7.2% year over year, driven by positive comps in the
quarter and a turnaround from declines seen in the last few
quarters. Moreover, the addition of 18 new stores in the last 12
months also boosted top line growth. Comparable store sales were
backed by the strong performance of the appliance category.
Lower operating expenses offset the impact of a decline in
gross margins to lead to improved operating margins in the first
The company has also taken up several strategic initiatives,
which improved results in the first quarter of fiscal 2014. These
initiatives mitigated the effects of the continued weakness in
the consumer electronic category, which had been suffering since
the past few quarters.
In order to improve overall comps and the performance of the
consumer electronics category, the company designed three major
initiatives for fiscal 2014 to drive additional traffic and
sales. The company intends to increase market share of its
appliance category, expand its customer base through advertising
campaigns and focus on promoting consumer electronics through
compelling offers. hhgregg also intends to increase category
sales through its website capabilities.
Other Stocks to Consider
Other stocks in the retail sector that are performing equally
well and are worth considering include
Haverty Furniture Cos. Inc.
Fortune Brands Home & Security
), all of them with a Zacks Rank #1.
FORTUNE BRD H&S (FBHS): Free Stock Analysis
HHGREGG INC (HGG): Free Stock Analysis Report
HAVERTY FURNIT (HVT): Free Stock Analysis
KIRKLANDS INC (KIRK): Free Stock Analysis
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