Hastings Credits DVD for Upward Financials31 Mar, 2004 By: Erik Gruenwedel
A 38.6 percent increase in DVD sales offset a 32.2 percent decline in VHS sales to help Hastings Entertainment post fourth-quarter (ended Jan. 31) net income of $12.4 million on revenue of $163.2 million, or $1.07 per diluted share, compared to $9.5 million on revenue of $156.8 million, or 82 cents per share, for the same period last year.
Fourth-quarter sales of video games increased 9.5 percent.
For 2003 fiscal year, DVD sales surged 39.4 percent (VHS declined 20.6 percent) to help the Amarillo, Texas-based retailer report net income of $7.7 million on revenue of $508.3 million, or 68 cents per diluted share, compared to net income of $1.9 million on revenue of $495.4 million, or 16 cents per diluted share, during the same period last year.
Revenue from video rentals for the quarter dropped $185,000, to $28.1 million, compared to $28.3 million last year.
Fiscal-year video rental revenue increased $3.5 million, to $103.3 million, compared to $99.8 million during the same period last year.
With five new stores planned for fiscal year 2004 and 16 existing outlets scheduled for expansion, Hastings expects a 2.2 percent increase in annual rental revenue, 4 percent in merchandise sales, according company financial statements.