Struggling electronics market impacts Hastings revenue in Q4

Amarillo, Texas — Hastings Entertainment reported that net income was approximately $1.2 million, or 15 cents per diluted share, for the fourth quarter ended Jan. 31, compared with a net loss of approximately $8.4 million, or $1.00 per diluted share, for the same period last year. Net loss was approximately $9.3 million, or $1.14 per diluted share, for the fiscal year ended Jan. 31, compared with a net loss of $17.6 million, or $2.05 per diluted share, for the fiscal year ended Jan. 31, 2012.

"Our revenues continue to be negatively impacted by the increasing popularity of digital delivery, rental kiosks and subscription-based services, as well as the longevity of the current video game console cycle" said John Marmaduke, CEO and chairman. "In spite of lower revenues, our pre-tax profit for the fourth quarter increased over the fourth quarter of the prior year. Further, we reduced our pre-tax loss for the fiscal year by $3.7 million, or 29%, compared to the prior year.

"As of the end of the fiscal year, we have introduced our new product categories in forty-four of our 137 superstores. These categories include consumer electronics, music electronics and accessories, hobby, recreation and lifestyle, vinyl and tablets and were the primary driver in increases in comparable revenues of 15.1% and 12.9% for the quarter and full fiscal year, respectively, in our electronics department. We are dedicating approximately 600 linear feet per store to these categories and also increasing linear footage for trends including apparel, kids and seasonal categories along with a reduction in footprint dedicated to rental, music and books. We are encouraged by the results of this change to our business model and look forward to a full year's performance. Additionally, we plan on expanding these categories to an additional sixty-one stores in fiscal 2013."

Total revenues for the fourth quarter decreased approximately $11.5 million, or 7.5%, to $141.6 million compared with $153.1 million for the fourth quarter of fiscal 2011.  

Total revenues for the fiscal year ended Jan. 31, 2013 decreased approximately $33.9 million, or 6.8%, to $462.5 million compared to $496.4 million for the fiscal year ended Jan. 31, 2012.

As of Jan. 31, 2013, the company operated three fewer Hastings superstores, as compared to Jan. 31, 2012.

 

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