hhgregg Sinks After Lowering Guidance

hhgregg

is trading lower on the session following its Q1 prelim earnings announcement yesterday. The company said it sees sales of $490 million vs $509 million estimates and EPS of $(0.17)-(0.16). hhgregg also lowered its FY 2013 EPS guidance to $0.90-1.05 from $1.12-1.27. Dennis May, President and CEO stated, “Our sales results for the quarter are an indicator of the difficulty in the current retail environment, and more specifically the embedded volatility in the video industry. While we remain disappointed in our video results, we continue to make progress on our key initiatives of gaining market share in the appliances category, making strides toward stabilizing gross margin rates, and dynamically growing our e-commerce business. We remain committed to our model of competing on price and differentiating ourselves through service on big box consumer products." hhgregg is currently trading at $7.51, a loss of $4.03 or 34.92%.