Monday, multimedia entertainment retailer Hastings Entertainment, Inc. (HAST), reported a slip to loss in second quarter, negatively impacted by consumer spending amid the global recession. Hastings also lowered its earnings forecast for fiscal year 2010.
The Amarillo, Texas-based company reported a second-quarter net loss of about $0.4 million or $0.04 per share, compared to net income of about $0.7 million or $0.06 per share in the prior-year quarter.
Quarterly revenues decreased nearly 6.7% to $117.2 million from $125.7 million in the year-ago quarter. Total comparable-store revenues for the quarter decreased 8.1%.
Merchandise revenue for the quarter was $97.40 million, down 6.3% from last year, while Rental revenue for the quarter dropped 9.1% year-over-year to $20 million from last year.
Operating loss for the quarter was $0.40 million, compared to operating income of $1.53 million in the prior-year quarter.
John Marmaduke, chief executive officer and chairman, Hastings Entertainment said, "Our core customer base remains stable; however, customer purchase behavior has shifted toward value priced merchandise."
For the six-month period, net income declined to $1.3 million or $0.13 per share from $3.6 million or $0.34 per share in the same period last year.
Revenues for six months decreased 5.7% to $242.9 million from $257.6 million in the same period last year.
Looking ahead to the fiscal year 2010, Hastings now expects earnings in the range of $0.37 - $0.42 per share, compared to earlier issued forecast of $0.40 - $0.45 per share.
The company indicated that continued uncertainty in the current retail environment, particularly with respect to the holiday selling season, makes forecasting very difficult and hinted updating the guidance after the third quarter. The company also said it revised its internal forecast for the second half of the year, which has resulted in lower projected revenues.
HAST closed Friday's regular trading at $4.65 on the Nasdaq.
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