UPDATE 2-Hhgregg Q2 tops market estimates, shares jump

* Q2 EPS $0.13 vs est $0.07

* Q2 rev $332.2 mln vs est $324.5 mln * Sees FY2010 EPS $0.90-$1.00

* Shares up 7 pct (Recasts; Adds conference call details, analysts comments, updates share movement)

Viraj Nair

BANGALORE, Nov 5 (Reuters) - Hhgregg Inc (HGG.N), a regional electronics and appliance retailer, reported quarterly results that easily beat expectations, aided by improving sales trends, sending its shares up 7 percent.

"The sales trends were better, particularly in the appliance category... and the gross margin rates, which were flat year-over-year, was better than what we were expecting," Piper Jaffray & Co analyst Mitchell Kaiser said by phone.

Hhgregg is optimistic about appliances, which contributed 42 percent in sales in the quarter and has gained market share, a company executive said on a conference call with analysts.

Sales at stores open at least a year fell 7.5 percent for appliances, while overall same-store sales fell 9.4 percent.

In the television category, which also contributed 42 percent to second-quarter sales, comparable sales fell a steeper 15.9 percent, hurt by lower average selling prices and customers buying cheaper models.