X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

AMARILLO, TX-Hastings Entertainment Inc. on Monday reported net income of $200,000 for the second quarter ended July 31, down from $700,000 in the second quarter a year ago. The company’s earnings of two cents per share compared with six cents per share for the comparable quarter last year.

The net income was in line with the company’s internal forecast, according to John Marmaduke, chairman and CEO, who commented that the company considers its business model strong despite the slip in profits. He pointed out that revenue increased to $123.1 million for the quarter, compared with $122.7 million for the comparable quarter last year.

“We feel that our total and comparable revenue increase, in spite of continued weakness in the music and in-store video rental industries and books having an unfavorable comparison against last year’s release of Harry Potter and the Half-Blood Prince, attests to the strength of our multi-media business model,” Marmaduke said.

The Hastings CEO blamed the profit decline on an acceleration of clearance merchandise to accommodate new merchandising initiatives in books and sidelines, as well as “aggressive marketing initiatives in video and game rentals.” The company reports variety of comps, broken down according to music, books and other categories.

Music comps, for example, decreased 7.9%, which was primarily attributable to fewer premier artist CD releases, the company said. Book comps decreased 3.2% as a result of decreased sales of new release hardbacks and paperbacks, but the company said the decline “primarily resulted from last year’s $1.7 million in sales of the sixth book in the Harry Potter series.

Video for sale comps increased 9.8% due to increased sales of front-line new release DVDs, DVD box sets, and used DVDs. Video game comps increased 22.2% via increased sales of Microsoft XBOX 360 hardware and games, as well as increased sales of video game accessories.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.