Hastings Entertainment Ups Q4 Profit24 Mar, 2014 By: Erik Gruenwedel
Disc sales increased 1.4%, compared with 0.8% decline a year ago
Hastings Entertainment March 24 reported fourth-quarter (ended Jan. 31) net income of $2.3 million, up 91% from net income of $1.2 million during the previous-year period. Revenue declined $5.2 million to $136.4 million due in part to operating 10 fewer stores than a year ago.
Amarillo, Tex.-based Hastings, which operates 126 stores in the Southwest, earlier this month announced it will become a privately-held company after selling itself to an investor for $21.4 million.
Same-store movie sales increased 1.4%, primarily due to increased sales of new and used Blu-ray Disc and traditional DVD titles, partially offset by a decrease in midline new and used DVDs. Disc rentals dropped 11.5% to $13.8 million as Redbox kiosks and subscription streaming services such as Netflix continue to take market share.
Rental remains a profitable business generating 64% gross profit in the fiscal year.
Video game sales increased 10.7% due to the launch of the PlayStation 4 and Xbox One consoles, as well as an increase in consumer purchases of new and used games. Electronics increased 5.2% due to increased sales of big screen televisions and turntables.
“With the release of two new iPhone models we had increased sales in phone accessories,” CEO John Marmaduke said in a statement.
Same-store trends revenue increased 25% due to increased sales in novelty gifts and toys, boxed games, action figures, children's toys, licensed and branded products and recreational and lifestyle products. Top-selling novelty brands included “Sons of Anarchy,” “The Walking Dead” and “Doctor Who.”