On Monday, Hastings Entertainment reported $9.1 million of net profit on revenue of $176 million in its fourth quarter ending January 31, 2010. The entertainment retailer's revenue was down 1.4% while its profit was up 123%.
Music revenues in Q4 were down 8.9% on lower prices and 41 fewer stores than the same period in fiscal 2008. (Music was down 10.4% in the third quarter.) Video game sales rose 22.8% while the trends category (a merchandise category that covers everything from “Twilight” items to the Snuggie) was up 19.4%. Movies were up only 2.5% while electronics dropped 6.4%.
For the full year, revenue dropped 1.4% to $531 million and net profit rose 71% to $6.9 million. Music dropped 12.6% compared to fiscal 2008. The category was down 13.9% through the first nine months of the year.
Gift cards provided a boost to earnings. Breakage, the amount of gift cards that were not redeemed, accounted for 1.6% of total revenue and 122% of net profit for the full year.
In its earnings release, the company expects fiscal 2010 net profit of $3.0 million to $3.5 million.