Hollywood same-store sales up 7 percent2 Oct, 2002 By: Hive News
Hollywood Video's same-store sales jumped 7 percent for the third quarter ended Sept. 30, leading the company to raise its target for quarterly earnings by 3 cents to a range of 25 cents to 26 cents per diluted share.
The retailer has also accelerated the rollout of Game Crazy division, which are performing above expectations, according to CEO Mark Wattles. The chain now operates a total of 169 Game Crazy locations, adding 101 new departments during the third quarter alone.
Costs of opening the new departments will reduce earnings per share in the third quarter by approximately 2 cents. However, the company expects the net result of Game Crazy, including the cost associated with the opening of future departments, will be neutral to its earnings during the fourth quarter and accretive for the year 2003.
“Based on our results to date and our ability to rollout these departments, we believe our game business will become a major contributor to our earnings,” Wattles said. “We plan to make Hollywood Video one of America's premier destinations for the video game enthusiast."
Wattles said he was particularly pleased with the chain's 7 percent same-store sales hike, “especially considering the difficult comparison to the same period last year,“ when Hollywood reported 11 percent growth. In July, Hollywood provided guidance anticipating 3 percent growth in same-store sales and targeted adjusted diluted EPS to be in the range of 22 cents to 23 cents per share for the third quarter.