Revenues at Hastings Entertainment in the third quarter ended October 31 fell 6.5% to $114.3 million and the net loss was $3.7 million compared to net income of $100,000 in the same period in 2007.
During the quarter, sales of books at stores open at least a year rose 1% compared to a gain of 2.5% in the same period last year. By comparison third quarter comp-store sales of electronics rose 12.7%, cafe sales rose 7.9%, movies dropped 5%, video games were down 14.8% and music fell 19.5%. The modest gain for books was "due to strong sales of new trade paperback as well as used trade paperback and used hardbacks, partially offset by lower sales of periodicals."
In a statement, CEO John Marmaduke said, "Beginning with September, changes in consumer spending have created the most difficult retail environment we have ever seen. Obviously we are concerned about the fourth quarter in light of the current economic climate. However, we believe consumers will entertain themselves with books, videos, video games and trend products, and we strongly believe that the unique value proposition of our store model [buying, selling, trading and renting products at relatively low price points] gives us a competitive advantage in the gift giving season and beyond."
And in a sign of the times, Marmaduke emphasized that Hastings has "an excellent credit facility with Bank of America in the amount of $100 million, which does not expire until August 2011 and provides us with sufficient working capital for the foreseeable future."