Rentals Drive 12 Percent Sales Hike At Hollywood7 Jan, 2003 By: Hive News
Expansion into video games helped increase Hollywood Video‘s same-store sales for the fourth quarter by 12 percent, the company reported today.
The company expects adjusted diluted earnings per share for the fourth quarter to be in the range of 38 to 40 cents per share, meeting the projections from its Dec. 3 statement increasing earnings guidance.
"Even with the effect of the shortened shopping season, we still produced an increase in same store sales of 12 percent for the quarter on top of an 11 percent same-store sales increase in the fourth quarter last year,” said CEO Mark Wattles. “The increase was driven by double-digit increases in same-store sales for October and November and a single-digit increase in same-store sales for December. For the New Year's week, our same-store sales were back in the double-digit increase range and we anticipate double-digit comps for the first quarter of 2003. Half of our same-store sales increase for the fourth quarter came from our core rental business, which was driven by DVD and new game platforms with the balance coming from merchandise sales driven by our Game Crazy initiative."
The company also announced it expects its increase in same-stores sales for the year to be in the range of 12 percent to 14 percent and its targeted adjusted diluted earnings per share to be in the range of $1.40 to $1.45 per share.