Music and entertainment retailer Handleman Company reported revenue and earnings declines during the recent quarter, an all-too-familiar result in the sector.
For the company’s fiscal second quarter ending October 27th, revenues dipped 4.5 percent to $315.5 million, and losses widened $6.8 million to $15.0 million. Those are movements in the wrong direction, and part of a larger bloodletting in music retail.
During its recent quarterly report, the company pointed to “lower music sales in the United States and Canada,” as well as a severed relationship with distribution partner ASDA in August. The company also outlined losses from various “cost saving initiatives,” and heavy charges from currency fluctuations. Additionally, Handleman incurred a serious loss related to a 2005 investment in London-based startup Blueprint Digital Ltd.