Hastings Sees Drop in Rentals, Increase in Sales in Q224 Aug, 2004 By: Holly J. Wagner
Hastings Entertainment suffered a 5.5 percent decrease in same-store rentals for the second quarter ended July 31, and same store-rentals are down 2.9 percent for the first two quarters of the year, executives said today.
The second quarter's overall rental revenue was down to $25 million, accounting for 20.4 percent of the chain's revenue, from $25.8 million and 22.4 percent of the chain's revenue in the comparable quarter last year. For the first six months of the year, overall rental revenue is down 7 percent, including existing and new stores, from $51.2 million and 22.1 percent of revenue last year to $50 million and 20.4 percent of revenue this year.
Executives attributed the drop to “general rental weakness industrywide.” Same-store video sales, however, were up 26.2 percent for the quarter (compared to 14.1 percent in the same quarter last year) and 25.4 percent over the first six months (compared to 18.5 percent last year).
The chain suffered minor financial setbacks while it was instituting new warehouse management software. In July, it also opened one new superstore, in Richland, Wash. Since Feb. 1, the chain has also relocated four stores, remodeled three stores and expanded one.
Hastings operates 121 superstores in 20 states as well as an e-commerce site.