hhgregg, Inc. announced preliminary results for the third fiscal quarter ended December 31, 2012 and updated fiscal 2013 guidance (year ending March 31, 2013). For the third fiscal quarter of 2013, the company estimates net sales to be approximately $799.6 million, a decrease of approximately 3.6% as compared to net sales of $829.5 million reported for the third fiscal quarter of 2012. Third fiscal quarter comparable store sales are estimated to have decreased approximately 9.7%, with the video category expected to have decreased approximately 24.6%, the appliance category expected to have increased approximately 6.1%, the computing and mobile phones category expected to have increased approximately 16.2%, and the other category expected to have decreased approximately 23.7%. The company expects net income of approximately $17.4 million, or $0.51 per diluted share, for the third fiscal quarter of 2013, compared with net income of $22.5 million, or $0.60 per diluted share, for the comparable prior year period. Third fiscal quarter 2013 earnings were negatively impacted by lower than expected sales performance in the video category. Third fiscal quarter 2013 results include a $0.5 million ($0.3 million after-tax) charge related to impairment for one store. Net income, as adjusted for this item, for the three months ended December 31, 2012 is expected to be approximately $17.7 million, or $0.52 per diluted share, as adjusted, a decrease of approximately 21.3% in adjusted net income when compared to the prior year period.

In light of the preliminary third fiscal quarter sales and earnings results and the revised outlook for the fourth fiscal quarter, the company now anticipates that annual net income per diluted share will be within a range of $0.70 to $0.80 for fiscal 2013. This compares to previous guidance of net income per diluted share of $0.90 to $1.05 for fiscal 2013. The company's revised fiscal 2013 guidance includes the following assumptions: fiscal 2013 comparable store sales of negative 8.5% to negative 7.5%, as compared to previous guidance of negative 6.0% to negative 4.0%; fiscal 2013 net sales increase of flat to 1.0%, as compared to previous guidance of net sales increase of 3.0% to 6.0%; net capital expenditures of $35.0 million to $40.0 million, as compared to previous guidance of $50.0 million to $55.0 million.