Grapevine-based GameStop reports record second quarter 2008 results

by PegNews wire

GRAPEVINE — GameStop Corp., the world’s largest video game and entertainment software retailer, today reported sales and earnings for the second quarter ended August 2, 2008.

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Net earnings were $57.2 million for the second quarter of 2008, compared to net earnings of $21.8 million for the second quarter of 2007, an increase of 162.1%. Diluted earnings per share were $0.34, compared to $0.13 in the prior year quarter, exceeding the high-end of previously released guidance by $0.06 per share.

GameStop sales increased 34.8% to $1,804.4 million in the second quarter, compared to $1,338.2 million in the prior year quarter. Comparable store sales increased 20.0% during the second quarter as new video game software sales grew 43%. The top five selling games during the quarter were Take Two’s Grand Theft Auto IV, Metal Gear Solid 4: Guns of the Patriots from Konami, NCAA Football 09 by Electronic Arts, Nintendo’s Wii Fit and Battlefield: Bad Company from Electronic Arts.

R. Richard Fontaine, Chairman and Chief Executive Officer, stated, “In the second quarter, we produced record revenues in each of the geographical regions where we operate. By prioritizing our investments and focusing our resources, GameStop continues to significantly outperform the specialty retail segment as a whole, when comparing top-line growth, comparable store sales, and net earnings growth.”

Fontaine continued, “We are raising our full year 2008 EPS guidance based on growth of the worldwide installed base and our expectations of a strong second half of the year. We have consistently delivered superior returns to our shareholders by driving value through our new and used business model, generating exceptional returns from our new store expansion and we fully expect this performance to continue.”

Daniel DeMatteo, GameStop's Vice Chairman and Chief Operating Officer, indicated, "GameStop customers not only have the benefit of our convenient locations, associates with unmatched product knowledge, and an attractive buy-sell-trade model, but an exceptional spectrum of games for all players. In fact, the National Retail Federation recently named GameStop as the top 'Power Player' Entertainment Retailer in the US.

“Expected releases in the second half of the year include great sequels like Guitar Hero: World Tour and Call of Duty: World at War, new IP such as LEGO Batman, Little Big Planet and Spore, as well as second generation hits like Fable 2, Rock Band 2 and Gears of War 2,” said DeMatteo.

Source: Gamestop