In the first quarter ended April 30, total revenues at Hastings Entertainment fell 5.5%, to $109.1 million, and the net loss was $2.2 million, compared to a net gain of $833,000 in the same period in 2012. As of April 30, Hastings operated four fewer superstores compared to a year earlier.
Sales of books at stores open at least a year fell 8.4%, the company said, "primarily due to a weaker new release schedule for new books as compared to the first quarter of fiscal 2012, which included strong sales from the Hunger Games trilogy." Music, games and consumables also had sales drops during the quarter.
Chairman and CEO John H. Marmaduke commented: "Our revenues continue to be negatively impacted by the popularity of digital delivery, rental kiosks and subscription based services, as well as the longevity of the current video game console life-cycle." In response, the company has introduced new product categories that include consumer electronics, music electronics and accessories, hobby, recreation and lifestyle, vinyl and tablets, most of which are sold in the electronics area, whose comp-store sales gain was 18.4% in the quarter.
Hastings is in the process of "resetting" its stores to emphasize these new products; by the end of the fiscal year, 104 of its 134 stores will be reset.