Sales of books at Hastings Entertainment's stores open at least a year increased 1.4% for the second quarter ended July 31, a significant improvement over the first period when comparable-store sales of books fell 5.4%. The improved book sales and an increase in comparable-store video rental revenue of 4% helped offset merchandise sales declines of 1.5% and a drop in comparable-store music sales of 14.3%. Once again video games were Hastings's fastest-growing category on a percentage basis, with gross revenue jumping 70% in the quarter. DVD sales were up 32%.
Total revenue in the quarter rose 0.3%, to $115.4 million. Net income was $188,000 compared to a net loss of $1.6 million in the same period in 2002. (Excluding various special charges, the second quarter loss a year ago would have been $400,000.) For the year to date, total revenue rose 1.9%, to $232.2 million, while the net loss fell to $880,000 from $1.1 million in the same period a year earlier.
V-p and CFO Dan Crow observed that the company's operating performance in the first half of the year was "better than our internal projections." Although the company remains concerned about the sluggish economy, Crow noted that during the first three weeks of August, "merchandise revenues began to pick up," and as a result Hastings is maintaining its guidance of 27 to 32 cents a share for the year.
