Hastings Q2 Profit Flat22 Aug, 2005 By: Erik Gruenwedel
Citing a slumping rental market, Hastings Entertainment today posted second-quarter (ended July 31) net income of $700,000, or 6 cents per diluted share, compared to $600,000, or 5 cents per diluted share, during the same period last year.
The Amarillo, Texas-based retailer reported revenue of $122.7 million, up $300,000 from $122.4 million last year.
Same-store rentals dropped 10.2 percent, to $22.7 million, from $25 million last year. Buoyed in part by sales of new and used Microsoft Xbox video games (up 14.6 percent), other hardware systems and related boutique items, same-store merchandise sales increased 1.7 percent, to $100 million, from $97.4 million last year.
Hastings chairman and CEO John Marmaduke, in a statement said he was pleased with the quarter in light of the ongoing shrinkage in video rental and music sections.
“We are pleased with our results in what proved to be a very challenging second quarter for many retailers,” Marmaduke said.
In related news, Hastings announced it hired Jeff Ostler as VP of operations. Ostler, who was VP of retail operations for Dollar General Corp. in Nashville, Tenn., takes over for Robert Berman, who unexpectedly announced his resignation in March.