Hastings Posts Comp-Store Gains21 Aug, 2002 By: Hive News
Amarillo, Texas-based Hastings Entertainment reported total revenues for the quarter ended July 31 increased 4.5 percent to $115 million compared to $110.1 million a year ago.
Net income rose 12 percent to $878,000 compared to $783,000 in fiscal second quarter 2001 on a $1.27 million increase in interest income from a tax refund.
Books, DVD and video games offset a decline in music sales.
Comp-store revenues grew 4.9 percent, including increases in merchandise comps of 5 percent and rental video comps of 4.6 percent, the company reported.
DVD and video games posted gross revenue increases of 47 percent and 127 percent, respectively, for the second quarter compared to the same period last year. For the six months ended July 31, 2002, DVD and video game categories grew 51 percent and 165 percent, respectively.
Quarterly book comps increased 6.8 percent compared to 1.4 percent for the same period last year.
Revenue from music decreased 4.6 for the six-month period ended July 31.
Relocated and expanded stores, with the newly developed floor plan, continue to show encouraging results, the company reported. "The 'three-across' format divides the store's products into three basic groups, with video sales and rental along one side; books, magazines and our Hardback Cafe on the opposite side; and music, games and lifestyle products in the middle. This format enables us to merchandise more product and provide better customer service," said John H. Marmaduke, president and CEO in a statement. "Relocated and expanded stores utilizing the 'three-across' layout recorded double-digit comp increases for the six months ended July 31, 2002 and are generally in-line with our revenue plans."
VP and CFO Dan Crow said the company would raise guidance to a range of 60 cents to 65 cents per diluted share from 55 cents to 60 cents on a pre-tax basis.
Hastings currently operates 143 superstores, averaging approximately 20,000 square feet, primarily in small to medium-sized markets throughout the United States.