Comp Sales Jump at Hastings

Comparable-store book sales increased 6.8% at Hastings Entertainment in the second quarter ended July 31 and were up 4.9% for the first half of fiscal 2003. Hastings's chairman, John Marmaduke, said the strong comp performance was the result of increased attention given to the book department this year, including such initiatives as improved signage. Recent bestsellers include the trade paperback edition of Harry Potter and the Goblet of Fire, Star Wars, The Remnant, Valhalla Rising and Dr. Atkin's New Diet Revolution.

For the entire company, revenues rose 4.5% in the quarter, to $115 million, and net income increased 12.1%, to $878,000. In addition to higher book sales, DVD and video game sales were strong, offsetting declines in music sales. Marmaduke credited Hastings's new "3-Across" store format with helping to spur sales. Now, video sales and rentals are on one side of the store; books, magazines and the café are on the other side; and music, games and lifestyle products are in the middle. Marmaduke said the format "enables us to merchandise more product and provide better customer service."

For the first half of the year, net income jumped from $15,000 to $1.4 million on a 3.9% sales gain, to $227.9 million. Based on its six-month performance, Hastings said it expects to earn 60 cents to 65 cents per share for the year, up from earlier projections of earnings between 55 cents and 60 cents per share.