The conventional wisdom is that Blockbuster's business model is the equivalent of "toast." In fact, fears of an impending bankruptcy filing caused shares to fall as much as 86 percent early in March, as a result.
But Blockbuster says domestic same-store sales increased 4.4 percent in the fourth quarter of 2008, representing a 5.3 percent increase when compared to a decline of 0.9 percent in the same period in 2007.
The increase in same-store sales was comprised of a 2.6 percent decrease in domestic same-store rental comparables and a 36.5 percent increase in domestic same-store retail comparables, which was largely driven by increased sales of games, game merchandise and consumer electronics.
For the full year of 2008, Blockbuster achieved a 6.4 percent increase in domestic same-store sales, compared to a decrease of 6.9 percent in 2007. The 2008 domestic same-store comparables included a 1.2 percent increase in domestic same-store rental comparables and a 37.4 percent increase in domestic same-store retail comparables.
Companies and executives frequently manage to outperform conventional wisdom, and it appears Blockbuster has done so.
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