Sales at Hastings Entertainment in the first quarter ended April 30 rose 3.5%, to $116.8 million, from $112.8 million, but the company had a net loss of $1.1 million in the period, compared to net income of $600,000 in the first quarter of fiscal 2002. Some $500,000 of the first-quarter net loss was attributed to an accounting change.
Still, while comparable-store video rentals were up 9.5%, book sales in the first quarter at stores open at least a year fell 5.4%—below "internal projections"—and comp-store music sales fell 11.8%. Books accounted for 23% of sales in 2002. The company opened five stores during the year, which contributed to the overall sales increase.
Videogames is the company's fastest-growing segment, with sales up 98.2% in the first quarter, while DVD sales jumped 47.2%.
Noting the difficult music and book retail markets, president and CEO John Marmaduke commented: "We also believe that the war in Iraq and general economic conditions contributed to our lower-than-planned merchandise comps."
