Gamestop reports record Q2 results

GameStop has announced net earnings of USD 21.8 million for Q2 2007, a 586 per cent increase over Q2 2006.

"GameStop's outstanding second quarter was fueled by continued consumer demand for all the prevalent hardware platforms and the compelling games released during the quarter," said R. Richard Fontaine, GameStop's chairman and CEO.

Diluted earnings per share were USD 0.13 for the second quarter of 2007, including debt retirement costs of USD 0.01 per diluted share, exceeding the high-end of previously released guidance by USD 0.06 per share.

Total sales increased 38.9 per cent to USD 1,338.2 million, up from USD 963.3 million in the same quarter of the prior year. Top selling videogames during Q2 2007 were Guitar Hero II, NCAA Football '08, Mario Party 8, Pokemon Diamond and Pearl, and Forza Mortorsport 2.

"Our second quarter performance was very broad-based, with the U.S., Canada, Australia and Europe all exceeding expectations," Fontaine continued. "During this quarter, we opened 150 new stores and now operate 4,954 stores in 16 countries."

For Q3 2007, GameStop is forecasting comparable store sales to increase in the range of 30 to 32 per cent. Diluted earnings per share are expected to range from USD 0.19 to USD 0.21 compared to earnings per share of USD 0.09 in Q3 2006.

The company is raising its full year 2007 diluted earnings per share guidance to range from USD 1.45 to USD 1.48, not including debt retirement costs. Total revenues are now projected to grow between 20 and 22 per cent with an expected increase in comparable store sales ranging from 15 to 17 per cent.