Electronics Boutique Q2 Revenue Jumps 24 Percent29 Aug, 2005 By: Kurt Indvik
Continued strong demand for Sony's PlayStation Portable and a 17.8 percent growth in software sales drove revenue and comp-store sales growth for Electronics Boutique (EB) in its second quarter, ended July 30.
Revenue hit $448.3 million, up from $361.9 million for the comparable quarter last year. Comp-store sales rose 2.6 percent.
EB saw its revenue grow more than 30 percent in the company's first half, with revenue of $955.4 million, compared to $734.4 million for the first half of 2004. Net income was $7.2 million, excluding costs related to the pending merger of GameStop Corp. and the net loss associated with the acquisition of Spanish retailer Jump. With those expenses included, net income was $4.4 million. Net income for the comparable period last year was $6.9 million.
During the second quarter, EB added 227 stories, including the 138 stores in Spain, and now totals 2,280 stores. The merger with GameStop will see the chain have more than 4,000 stores worldwide.
The Securities and Exchange Commission is now reviewing the merger, which is expected to close in early October.
“Under the assistance of our advisers, we are working closely with GameStop to help the transition move forward smoothly, and we are pleased with the progress our integration teams are making,” said Jeffrey Griffiths, EB's president and CEO.