Hollywood Video Plans Ambitious Growth23 Jan, 2003 By: Hive News
Hollywood Entertainment expects full-year same-store sales to grow 12 percent to 14 percent in 2003 and adjusted diluted earnings per share to fall in the range of $1.40 to $1.45 per share, the company announced today.
The 1,800-store chain plans to use cash flow to open 200 new stores and add 300 Game Crazy departments.
Founder and CEO Mark Wattles predicted the chain's rental revenues will grow with DVD hardware penetration.
“Contrary to what has been reported in the press, DVD has and is driving growth in our rental business,” he said. “Based on our experience for the last two years with millions of DVD rental households, our average customer increases their rental spending after buying a DVD player.”
Broken down by quarter, Hollywood is looking to achieve a 10 percent same-store sales increase and 35 cents per share in adjusted diluted earnings in the first quarter, followed by 9 percent and 38 cents per share in the second quarter, 12 percent and 30 cents per share in the third quarter and 16 percent and 47 cents per share in this year's fourth quarter.