Blockbuster cuts 2Q loss, but comps still down

DALLAS Blockbuster reported a net loss of $39.7 million, or 21 cents per diluted share, for its second quarter compared with a net loss of $44.7 million, or 23 cents per diluted share, in the second quarter of 2008.

The company reported that same-store sales for the second quarter decreased 17.8%, reflecting rental and retail comparable decreases of 13.3% and 37.9%, respectively. Blockbuster claimed the decrease in domestic rental comparables was primarily due to a combination of three factors: Blockbuster's management of the business to preserve cash and maximize liquidity, the challenging macro economic environment, and the increasingly competitive landscape. The decrease in domestic retail comparables was primarily due to lower sales of game hardware, software and accessories, according to the company.