Fast-growing appliance and electronics chain hhgregg Inc. said today that it drove growth in earnings despite declining same-store sales as consumers bought smaller televisions.

The Indianapolis-based company, which operates 126 stores in 10 states, said it earned $4.9 million, or 13 cents a share, in the second quarter, up from $3.4 million or 10 cents a share during the same period in 2008.

The retailer’s comparable store sales decreased 9.4 percent, attributed to weakness in consumer demand in both the video and appliance categories. That’s a trend that has continued during the past six months as consumers are still buying TV sets, but “trading down” in screen sizes, the company said.

* Read hhgregg’s press release. *

“We are pleased with our quarterly operating performance and our ability to drive growth in earnings … all while continuing to add new stores,” CEO Dennis May said. “While the overall environment remains challenging, we are encouraged by the improving traffic and sales trends we experienced throughout the quarter.”

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Also, a triple-digit spike in computer sales offset decreases in the mattress category, hhgregg reported.

For the year-to-date, hhgregg stock has increased by more than 106 percent. It fell nearly 37 percent in 2008, according to Morningstar financial resource. The stock closed Wednesday at $17.91 per share.

The retailer has opened 16 stores so far in a planned 22-store expansion, with two more to open before the “Black Friday” post-Thanksgiving Day shopping day.

According to Morningstar, hhgregg, Inc. is a chain of retail stores across the United States specializing in video and audio products, home appliances, and accessories. The company sells plasma televisions, DVD recorders, refrigerators, freezers, computers and other products made by firms like Hitachi, JVS, Panasonic, Toshiba and Sony.