Handleman Co. said its third quarter net income dropped almost 30% to $ 10.1 million or 30 cents per share as sales fell 11% to $ 300 million, in line with expectations. Handleman shares dropped 38 cents to $ 11.50 per.
Handleman attributed most of that drop to a decrease in music sales, which fell 18% to $ 161.1 million in the quarter ended Jan. 31 due to year-end inventory problems that “resulted in reduced sales volume and increased merchandise returns in January.”
Homevideo sales of $ 103.3 million were basically unchanged from the same year-ago period.
Home software sales also fell 21% to $ 14.4 million, primarily due to the loss of two customers who dropped Handleman as a supplier. Book sales rose 16% to $ 21.2 million.
For the first nine months ended Jan. 31, Handleman’s net income fell 32% to $ 22.8 million or 68 cents per share on a 6% dip in revenues to $ 816.5 million.