Handleman Posts Widened Losses, Pushes Diversification

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US-based retailer Handleman posted stronger revenues during the most recent quarter, though losses widened.

The company disclosed revenues of $274.2 million for the three-month period ending July 28th, a 14 percent bump over year-ago figures of $240.4 million.  Losses totaled $17.7 million, or $.88 per diluted share, compared to year-ago losses of $5.9 million, or $.30 per diluted share.

Handleman chairman and chief executive Stephen Strome pointed to a major downturn from music-related assets, particularly CDs.  Specifically, music-related losses topped $13.8 million, according to the company. “Although our operating performance improved over last year’s first quarter, the music industry continues to decline and impact our music revenues,” Strome noted.  “As a result, we are taking actions to further reduce costs and improve operating performance as well as initiate opportunities for diversification.”

That sentiment is part of a far larger diversification movement within music retail, one designed to capture stronger revenues from DVDs, consumer electronics, games, and even fashion and books.