Hastings Entertainment has reported a first quarter loss of $2.2 million as year-over-year revenue fell 5.5% to $109.1 million for the quarter versus $115.5 million last year. Hastings, which operates 134 stores primarily in the Southwest, has been hurt by kiosks and digital distribution, factors that were cited as primarily responsible for a 9% decline in same store movie and videogame rental income. Hastings has also been adversely affected (as has the entire video game industry) by the longevity of the current video game console life cycle and competition from smart phone games.
Hastings is in the process of re-purposing the floor space in its stores by cutting back on rental, music, and books while expanding its Electronics and Trends sections (see “Hasting Cuts Back on Books, Music, & Rental”). So far 44 of Hastings’ stores have made the transition and they helped boost sales of electronics 18.4% for the first quarter, which ended April 30th.
Q1 Revenue Down 5.5%
Posted by ICv2 on May 21, 2013 @ 11:45 pm CT