Hollywood Entertainment Posts Drop in Profit

The videostore chain operator beats its own estimate for quarterly earnings, however.
Author:
Publish date:

Hollywood Entertainment

(HLYW)

said Tuesday that its second-quarter income fell 53.7%.

The videostore chain operator earned 30 cents a share for the quarter, beating its outlook of 29 cents a share, which matched the consensus estimate from a poll of nine analysts conducted by

Thomson First Call

.

Net income for Hollywood Entertainment totaled $19.2 million, compared with last year's $41.5 million, or 64 cents a share, which included gains from adjusting a restructuring charge and a more favorable tax rate. Excluding those gains, the company earned 27 cents a share in the second quarter of 2002.

Revenue rose 13% to $389.4 million from last year's $345.3 million. Same-store sales grew 11%, partly due to a 4% rise in rental-product revenue and an increase in merchandise sales.

During the second quarter, it added 122 new Game Crazy departments to existing Hollywood Video stores and opened 10 new stores. As of June 30, the company operated 1,846 Hollywood Video stores, of which 483 included a Game Crazy department.

Shares of Hollywood Entertainment fell 2%, or 36 cents, to $17.74 Tuesday.