Electronics Boutique Revises Third-Quarter Earnings Estimates Downward; Still Expects Net Income Gains for the Year16 Oct, 2001 By: Hive News
West Chester, Pa.-based Electronics Boutique HoldingsCorp. on Tuesday updated its earnings estimate for the third quarter ending Nov. 3, 2001, by advising the company still expects to report a year-over-year improvement in net income, but at the low end of its previously issuedestimate of $0.11 to $0.14 per share, compared with earnings per share of$0.06 a year earlier.
The company expects to report third quarter sales below previous estimates, with better than expected gross margins due to enhanced operating efficiencies and benefits from expansion of its pre-owned video game business.
Citing delays in consumer purchases attributable, in part, to the events onand after Sept. 11, the company anticipates comparable store sales will bein the negative single-digit range.
Jeffrey W. Griffiths, president and c.e.o., said,"Although mall traffic is not at last year's level, it appears to be improving and we remain optimistic that the last few weeks of October, a traditionally robust sales period, will be strong. Nonetheless, it remains difficult to gauge the continued impact of recent events on consumer spending. Overall, we still anticipate the video game market will grow more than 25% annuallyover the next few years."
He noted that a number of software title introductions were delayed to late in the quarter or have been shifted by publishers from the third to the fourth quarter, which also will coincide with the much-anticipated release ofNintendo GameCube and Microsoft Xbox in November.
Griffiths added that salesof Sony PlayStation 2 units have been particularly strong in Australia and Europe, since Sony's price reduction in late September.
Video game software retailer Electronics Boutique operates 850 stores in 46 states and Puerto Rico, Australia, Canada, Denmark, New Zealand, Norway, Italyand South Korea.