Trans World posted a net income of $36.5 million, or $1.12 a diluted share on sales of $586.7 million, in its fiscal fourth ended Feb. 3. That's nearly double the $20 million, or 64 cents per diluted share, the company made in the prior year's fiscal quarter when sales were $458.6 million.

Trans World attributed the 28% increase in sales to the fact that it's average store count for the year was 1,044, while in the previous year the average store count was 801. Also, the fourth quarter just completed was a 14-week period versus a 13-week period.

In the fourth quarter, comparable-store sales were down 6%, with music being the category dragging things down through its 14% decline. DVD's were flat, but due to erosion of VHS sales, movies were down 2% for the quarter. Videogames showed a 4% comparable-store gain and other products -- which include electronics, accessories and boutique -- grew by 11%.

As a percentage of sales, music comprised 38% of the company's business. Video was 41%, games were about 9%, and other products were 11%.

For the year, Trans World produced $10.2 million in net income, 32 cents per diluted share, on sales of $1.47 billion, versus the $600,000, or 2 cents per diluted share, on sale of $1.24 billion in the prior fiscal year. Of the $10.2 million in net income, $8.9 million was attributed to unallocated negative goodwill from the Musicland acquisition.

In March, Trans World acquired 335 Musicland stores, and in January shuttered about 85 of them. While the company's operations only produced $1.3 million in cash net income, earnings before interest, taxes, depreciation and amortization were $36.8 million. That number came from producing a 35.3% gross margin while maintaining selling, general and administrative expenses at 32.8%.

For the full year, Trans World turned in a 6% comparable-store decline, with music down 14%, video up 1%, videogames up 1% and other product up 8%. As a percentage of revenue, music was 45%, video was 37%, videogames were 8% and other products were 10%.

While the company did not disclose online sales, it reported the re-launching of the digital download portion, and the switching of hosts to Scottsdale, Ariz.-based Vcommerce from MusicNet. The Trans World also has initiated a 25-store pilot program for its CD-burning and digital downloading kiosks.