By Stephanie Prange | Posted: 05 Mar 2009
Blockbuster Inc. March 5 reported domestic same-store sales were up 4.4% in the fourth quarter ended Jan. 4, as speculation about bankruptcy swirled.
Same-store sales showed a 2.6% decrease in domestic rentals and a 36.5% increase in domestic retail, compared to the same period the year prior, the company reported in a preliminary operating information release. The retail sales jump was driven by increased sales of games, game merchandise and consumer electronics, the company reported.
Same-store sales were up 6.4% domestically for the year, compared to a decrease of 6.9% the previous year. Domestic same-store rentals increased 1.2% and domestic same-store retail jumped 37.4%.
“In 2008 we executed on our key initiatives to grow the core rental business, enhance our retail offering and develop digital delivery channels. As a result, adjusted EBITDA exceeded our guidance range of $300 million to $315 million,” said Jim Keyes, Blockbuster chairman and CEO. “With respect to our financing initiatives, we continue to work diligently to resolve the August 2009 debt maturities, aggressively reduce costs and maximize the company’s strong cash flow generation. We look forward to sharing our progress.”