Musicland's Net Earnings Zoom 62% In 2nd Qtr.
By Jeff Malester -- TWICE, 10/9/2000
MINNEAPOLIS -- By focusing on cross-leveraging its stores and websites to increase exposure and build its customer base, Musicland Stores Corp. enjoyed a 62 percent increase in net earnings for its stores segment during the second quarter ended June 30. Earnings reached $3.6 million for the period, compared to $2.2 million for the second quarter of 1999.
Total second-quarter store sales rose 5.2 percent, hitting $400 million, compared to $381 million in the year-ago period. Sales in September dipped slightly (see story on page 1).
Breaking out specific store types, Musicland mall stores climbed 2.8 percent in the three months, accounting for $256 million, compared to $249 million in the same quarter last year.
Superstores reached $145 million in the quarter, a 9.7 percent rise over the $132 million registered in the year-ago quarter.
Overall comp-store sales increased 4.4 percent in the quarter, with mall stores gaining 4.9 percent, compared to 3.7 percent in the same three months last year. Superstores lost ground, registering a comp-store gain of 3.3 percent, compared to 5.7 percent in the year-ago quarter.
Consolidated Musicland net earnings, reflecting both stores and its e-commerce business, climbed 13 percent in the second quarter, reaching $1.7 million, compared to $1.5 million in the year-ago quarter. Consolidated sales rose 5.6 percent to $402.5 million, up from $381 million in second-quarter 1999.
For the six months, sales in mall stores climbed 2.3 percent, reaching $518 million, compared to $506 million in the same six months last year. Superstore sales jumped 7.8 percent to $297 million, up from $276 million in the year-ago period.
Comp-store sales increases for mall stores hit 3.9 percent for the six months, compared to 2.7 percent in the same period in 1999. Comp-store sales increases for superstores dropped to 2.2 percent for the six months, compared to 6 percent in the year-ago period.
At the end of the second quarter, Musicland operated 1,065 mall locations and 263 superstores.
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