Hastings Widens Third-Quarter Loss19 Nov, 2012 By: Erik Gruenwedel
Hastings Entertainment Inc. Nov. 19 reported a third-quarter (ended Oct. 31) net loss of $8 million, up 45% from a net loss of $5.5 million during the previous-year period.
Amarillo, Texas-based Hastings, which operates 137 entertainment and consumer electronics retail stores throughout the Southwest and Colorado, said total sales surpassed $87.9 million compared to $92.6 million last year.
Same-store sales of movie discs decreased 1.5% during the quarter primarily due to decreased sales of previously-viewed films. Rental comps decreased 14% primarily due to fewer rentals of movies and video games, partially offset by an increase in rentals of Blu-ray Disc movies. Rentals decreased 11.6% primarily due to competition from Redbox kiosks and subscription-based services and negative impact on rentals from the Olympic Games.
Rental revenue topped $13.3 million compared to $15.8 million last year. Through the first nine months of the year, rental revenue topped $44.2 million compared to $57.2 million last year.
“Our revenues continue to be impacted by the increasing popularity of digital delivery, rental kiosks and subscription-based services,” said CEO John Marmaduke in a statement. “We also saw a significant negative impact on rental revenue … due to the November elections.”
Hastings said it reduced pre-tax losses $1.4 million.