Hastings Posts a Profit
By Jim Milliot -- Publishers Weekly, 9/3/2001
Hastings Entertainment, the multimedia retailer that sells books as part of the mix in its 139 stores, saw revenues rise 3.1%, to $110.1 million, in the quarter ended July 31. Revenues at stores open at least a year rose 4.2%, and net income was $800,000, compared to a net loss of $2.3 million in the same quarter a year ago.
"Our 'back-to-basics' focus on the operational drivers of our business is having positive effects," said chairman and CEO John Marmaduke. "We are pleased with the company's momentum." Hastings has upgraded and expanded some of its superstores and redesigned its small-market stores, which have performed beyond expectations.
The company is also upgrading its high-margin sideline product offerings to include musical instruments, home electronics and novelty items. DVD rentals jumped 160% in the quarter. Also contributing to the increase in merchandise comps were book releases by authors Sue Grafton, Danielle Steel and Bruce Wilkinson.
For the first six months of the year, sales were up 1.1%, to $219.3 million, and the company had a net income of $15,000, compared to a loss of $2.8 million in the first half of fiscal 2001.
