Palm Beach, FL 7/11/12 (StreetBeat) -- HHGregg Inc. (NYSE:HGG) shares slumped 32% to $7.89 on Wednesday after the electronics retailer projected a wider first-quarter loss. It forecast a loss of between $5.7 million and $6.2 million, or 16 cents to 17 cents a share. That missed the 4-cent consensus loss estimate. Comparable sales dropped 5.1%, hurt by a 16.7% slump in video sales, about a third of the company's total sales. "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," said Chief Executive Dennis May.
The company also cut its full-year high-end profit outlook to $1.05 a share, from a prior guidance of $1.27. The company said it's reducing advertising expenses and restructuring its field teams to cut costs to offset headwinds in the video industry. Larger rival Best Buy Co. (NYSE:BBY) also dropped 5.4% to $20.
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