Hastings Narrows Quarterly Loss20 Aug, 2012 By: Erik Gruenwedel
Sales of new and used Blu-ray Disc movies continue to shore up packaged media revenue
Hastings Entertainment reported a second-quarter (ended July 31) loss of $3.4 million, narrowed 13% from a loss of $4.1 million during the previous-year period.
The Amarillo, Texas-based retail chain operating more than 140 stores in the Southwest said the fiscal results reflected continued year-over-year comparable weak releases for movies and games. The movie category, which posted a slight increase in comparable sales (from the previous-year period), continues to be negatively impacted by the increased growth of rental kiosks and subscription video-on-demand services.
Indeed, rentals of DVDs and Blu-ray Disc titles fell 13% to $15 million from more than $17.4 million in the previous-year period. Rental comps fell 11.2% for the quarter, primarily due to fewer rentals of DVDs and video games, partially offset by an increase in rentals of Blu-ray movies. Rental comps decreased 7.9%, primarily due to lower quality of new releases during the quarter and competition from rental kiosks and subscription-based video-on-demand services.
Same-store sales of movies grew 0.4% in the quarter, primarily due to increased sales of new and used Blu-ray movies, partially offset by declining sales in new and used DVDs. Music comp sales fell 11.6%.
Video game comps fell 22.8%, primarily due to lower sales of video game consoles, new gaming accessories and new video games, partially offset by increased sales in used video game hardware and accessories. Sales in the video game industry, as a whole, continue to struggle and are down significantly due to a lack of new video game releases and weak console sales.
Overall revenue, which also includes in-store cafes, trends, consumables and electronics, dropped 3.8% to $89.3 million from $92.8 million last year.
“We are pleased to announce a significant decrease in pre-tax loss for the second quarter compared to the second quarter of fiscal 2011,” CEO John Marmaduke said in a statement.