AMARILLO, Texas, Jan. 18 /PRNewswire-FirstCall/ -- Hastings Entertainment, Inc. (NASDAQ:HAST), a leading multimedia entertainment retailer, today reported sales results for the two month holiday period ended December 31, 2006. At $127.7 million, total sales increased 2.0% over the same period in the prior year, but were lower than the Company's internal projections.
Total sales and merchandise gross margins were negatively impacted by a highly competitive holiday season, directed markdowns in sidelines and electronics to make room for our fiscal year 2007 merchandise plan, and sales incentives offered to increase the Company's market share. Therefore, management expects net income per diluted share will fall below our prior guidance of $0.65 to $0.70 for the full fiscal year ended January 31, 2007.
"We are disappointed with sales and gross margins during the holiday season," said Chief Executive Officer John Marmaduke. "This holiday season was highly promotional; however, I strongly feel that the trends which are leading us to fall short of our full fiscal year guidance are a result of specific market factors occurring in the fourth quarter and are not indicative of the Company's ability to produce increased growth in fiscal year 2007. We are focused on executing our new Discover Your Entertainment store model for profitable growth in fiscal year 2007." The Company plans to issue results for the three months and fiscal year ended January 31, 2007 on March 26th before the market opens.
Safe Harbor Statement Certain written and oral statements set forth above or made by Hastings or with the approval of an authorized executive officer of the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, the words "believe," "expect," "intend," "anticipate," "project," "will" and similar expressions identify forward-looking statements which are not necessarily historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements regarding our future merchandise margins and our general guidance for fiscal year 2006, are forward-looking statements. Such statements are based upon Company management's current estimates, assumptions and expectations, which are based on information available at the time of this disclosure, and are subject to a number of factors and uncertainties, including, but not limited to, our inability to attain such estimates, assumptions and expectations, a downturn in market conditions in any industry, including the current economic state of retailing (relating to the products we inventory, sell or rent) and the effects of or changes in economic conditions in the U.S. or the markets in which we operate. We undertake no obligation to affirm, publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Hastings Hastings Entertainment, Inc. is a leading multimedia entertainment retailer that combines the sale of new and used CDs, books, videos and video games, as well as boutique merchandise, with the rental of videos and video games in a superstore format. We currently operate 154 superstores, averaging approximately 20,000 square feet, primarily in medium-sized markets throughout the United States.
We also operate http://www.gohastings.com/ , an e-commerce Internet web site that makes available to our customers new and used entertainment products. The site features exceptional product and pricing offers. The Investor Relations section of our web site contains press releases, a link to request financial and other literature and access to our filings with the Securities and Exchange Commission. DATASOURCE: Hastings Entertainment, Inc.
CONTACT: Dan Crow, Vice President and Chief Financial Officer of Hastings Entertainment, Inc., +1-806-677-1422 Web site: http://www.gohastings.com/
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