Trans World Entertainment Increases Q1 Video Sales22 May, 2014 By: Erik Gruenwedel
Packaged-media retailer saw 2.4% uptick in disc sales, driven by Disney’s 'Frozen' and catalog titles
Trans World Entertainment Corp. May 22 reported a 2.4% increase in same-store video sales in the first quarter (ended May 3), compared to the same period a year ago.
Trans World, which operates the f.y.e. (For Your Entertainment) and Suncoast retail chains, in addition to related websites, said video represented 48% of company revenue in the quarter compared to 47% last year. Notable drivers in the quarter included Disney's animated hit, Frozen, in addition to catalog fare.
“Positive comps in video highlight our ability to drive the catalog business through a deep selection of titles and a strong value statement, while capitalizing on new releases,” CEO Robert Higgins said in the analysts’ call.
Total sales for the quarter decreased 7.2% to $87.2 million compared to $93.9 million for the same period last year. The company reported a net loss of $400,000 compared to net income of $1.6 million last year.
Trans World ended the quarter with 333 stores in operation compared to 353 stores last year, a 5.7% decline. During the quarter, the company opened or relocated 5 stores and closed 11 stores.
Music comps sales declined 6.2%, representing 28% of sales versus 30% last year. Trend sales increased 11% and represented 11% of revenue compared to 10% last year. Electronics decreased 8.3% and represented 8% of revenue versus 9% last year.
Meanwhile, video game comp sales increased 17%, representing 5% of revenue compared to 4% last year. Hardware helped drive sales, but Trans World cautions that limited new releases in support of the new consoles could dampen future software sales.
“We do expect an increase in the number of releases later this year,” Higgins said.