Hollywood Video Raises Guidance23 Jul, 2002 By: Joan Villa
Hollywood Entertainment boosted revenues 6 percent to $345.3 million in the second quarter on 7 percent higher same-store sales than the year-ago period.
Total revenues for the six months ended June 30 also climbed just over 6 percent to $709 million, and diluted earnings per share soared to $1.12 compared to 21 cents in the first half of 2001, the company reported.
The chain's second quarter net income of $41.5 million, up from $6.8 million a year ago, includes a $12.4 million accrual resulting from a favorable legal ruling regarding costs associated with closing Hollywood's Internet division, Reel.com.
The stronger-than-expected first half results led the 1,800-store chain to raise its full-year projections for adjusted diluted earnings per share to a range of $1.14 to $1.16 from the previous range of $1.10 to $1.14. Same-store sales are expected to grow 3 percent in the third quarter and 4 percent in the fourth quarter.