James Briggs

james.briggs@indystar.com

Shares of Indianapolis-based electronics retailer HHGregg Inc. tumbled Wednesday after the company reported weak sales during the holiday shopping season.

HHGregg's fiscal third-quarter sales plunged 11 percent over the previous year. Same-store sales dropped from $666 million in 2014 to $593 million in the quarter ending Dec. 31, according to the company's preliminary results. HHGregg will release its official numbers Jan. 28.

Computer and tablet sales dropped a staggering 35 percent, following a national trend of declining tablet sales.

HHGregg shares slid 34 percent to $2.52. Shares fell 30 percent during the morning, recovered slightly around midday, and then dropped further before the close of trading.

Although there weren't many bright spots in HHGregg's third quarter, the retailer succeeded in one area: sales of ultra-high-definition televisions, also known as 4K. HHGregg CEO Dennis May in November touted "momentum and growth in that category." In a statement Wednesday, May said the emphasis on ultra-HD sets paid off.

"Our focus on large-screen, premium video drove 59 percent of our TV sales in the quarter to be 4K TVs, up from 50 percent in the second fiscal quarter," May said.

Same-store furniture sales also improved rising 16 percent for HHGregg.

But the retailer struggled in most other areas. Appliance sales dropped 10 percent, and consumer electronics sales fell 8 percent, according to the company's estimates.

"During the quarter, we were challenged by the competitive pressures in the market," May said. "Although we are disappointed with our overall performance during the quarter, we are pleased with many of the strategic investments we have made for our transformation."

HHGregg is on pace to cut $50 million in costs in 2016, May said. The retailer has 227 stores in 20 states.

Call IndyStar reporter James Briggs at (317) 444-6307. Follow him on Twitter: @JamesEBriggs.