hhgregg CEO Dennis May Out After 17 Years16 Feb, 2016 By: Erik Gruenwedel
Consumer electronics and appliance retailer was late to offer free-shipping, which negatively impacted third-quarter results
Consumer electronics and appliance retailer hhgregg Inc. Feb. 16 announced CEO Dennis May is leaving the company after 17 years, effective immediately. CFO Bob Riesbeck has been appointed interim CEO and will continue to serve as CFO.
Indianapolis-based hhgregg, which operates 220 stores in 20 states in the East and Southeast, saw same-store third-quarter sales drop 10.8% due in large part to not offering free shipping and delivery — an industry standard in recent years mandated by online competitors such as Amazon, Walmart and Best Buy.
“We missed a couple things not only around free delivery, but also around some of the staffing transformations,” May said on the company's Jan. 28 fiscal call.
Indeed, revenue declined 10.9% to $593.2 million, from $665.6 million during the previous-year period. The net loss narrowed to $26.9 million, from $86.8 million a year ago. Despite the improvement to the bottom line, May has seen the company’s stock value plummet, with some observers likening hhgregg’s future to that of shuttered competitor Circuit City.