reported a 9% slide in same-store sales for the third quarter, as the video rental chain struggled to move boring movies amid burgeoning online competition.
Alabama-based Movie Gallery said same-store rental revenue fell 10.3% in the quarter, reflecting a 10.8% decline at Movie Gallery and a 10.1% fall at Hollywood Entertainment, which it acquired earlier this year. Video sales fell 2.2% on a same-store basis.
"We continue to believe that we have either increased or maintained our market share -- even in the urban markets where we compete head-to-head with some of the more aggressive competitors," the company said.
"Having said that, industry conditions remain challenging due to the weak recent home video release schedule, the maturation of both the DVD life-cycle and current game platforms, and the overabundance of DVD titles -- including television shows and re-releases -- now on the market," it said.
The stock closed at $8.50 Monday.
Movie Gallery noted that the year's highest-grossing movies come out on video in the fourth quarter. "We believe Movie Gallery is well-positioned for success as titles improve. With the integration of Hollywood Entertainment ahead of schedule, we remain confident in the combined company's long-term prospects."