During the first quarter, Hastings posted net income of $1.9million, or 17 cents per diluted share, compared to net income ofapproximately $800,000, or six cents per diluted share, for thefirst quarter of fiscal year 2005. The chain expects to achieve netincome per diluted share ranging from 58 cents to 63 cents for thefull fiscal year ending January 31, 2007.

Total revenues for the first quarter increased $2.3 million, or1.8%, to $131.4 million compared to $129.1 million for the sameperiod last year. Comp store sales increased 2.4% despite continuedweakness in the music and in-store video rental industries,Marmaduke said in a statement. Specifically, music comps decreased6%, primarily because of a weaker release schedule compared to theprior year's quarter. Book comps increased 2.7% as a result ofincreased sales of new release paperbacks and used books, whilevideo for-sale comps increased 13.8% due to increased sales offront-line new release DVDs, DVD box sets, as well as usedDVDs.

For the first quarter, total gross profit dollars increasedapproximately $2.6 million, or 5.9%, to $46.6 million, up from$44.0 million for the same period last year, primarily due toincreased sales volume as well as lower freight, shrinkage andreturns expense. As a percentage of total revenues, gross profitincreased to 35.5% for the quarter compared to 34.1% for the samequarter in the prior year.