First Q3 Profit For Hastings19 Nov, 2007 By: Chris Tribbey
Retailer Hastings Entertainment Inc. posted its first-ever third-quarter profit, the company reported Nov. 19.
Bolstered by strong new and used DVD sales, Hastings reported net income of $.1 million in the quarter ended Oct. 31, compared to losses of more than $2 million during the same period last year. The news sent shares of Hastings' stock up more than 12% in after-hours trading.
“In what continues to be a challenging retail environment in music and rental, we were able to improve pre-tax profits by $3.7 million from the third quarter of last year,” said CEO John Marmaduke.
Total revenue for the Amarillo, Texas-based company increased $2.7 million to $122.3 million, compared to $119.6 million for the third quarter of 2006.
On Nov. 20, the company authorized another stock repurchasing program to the tune of $7.5 million, bringing its total stock repurchasing efforts to $22.5 million.
“We believe that our stock price does not reflect our long-term value and are using the program to provide our shareholders additional opportunities to realize investment returns,” Marmaduke said.