Hastings Posts Decreased Q1 Profit16 May, 2011 By: Erik Gruenwedel
Rental comps dropped more than 5%, offset by gains in Blu-ray Disc rentals
Hastings Entertainment Inc. May 16 cited a decline in strong box office rental and sellthrough titles for contributing to first-quarter (ended March 31) income of $413,000 — down almost 60% from income of $1 million during the same period last year.
Amarillo, Texas-based Hastings, which operates more than 140 retail stores throughout the southwest, said rental revenue from DVD and Blu-ray Disc movies topped $19.5 million and 15.7% of total revenue, compared with $20.7 million (16.1%) last year.
Rentals of DVD movies and books on CD dropped 5.8%, partially offset by increased rentals of video games and Blu-ray movies.
Overall same-store movie comps decreased 6.5% due to lower sales of new DVDs, partially offset by increased sales of new and used DVD boxed sets and used Blu-ray movies. Movie sales were negatively impacted by a 25% drop in box office value of titles that came to Blu-ray and DVD during the quarter as compared with the same period in the prior year.
“Our top three selling movies during the current quarter generated approximately 54% less revenue than the top three selling movies during the comparable period in the prior year,” CEO John Marmaduke said in a statement.
Rental video game comps increased 7.7% and units rented increased 2.8%.
Overall revenue declined almost 4% to $124.1 million, compared with $129.1 million last year.
Hastings April 18 opened a new store in Nampa, Idaho.