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No Stopping Sales At GameStop

19 Nov, 2002 By: Hive News

Sales at video game specialty retailer GameStop Corp., increased 44.3 percent to $286.7 million in the third quarter, compared with $198.8 million in the prior year quarter.

"We are pleased with our third quarter results and continue to be very positive about the growth and earnings prospects of our business model,” chairman and CEO R. Richard Fontaine said. “During the quarter, both our mall and strip strategies performed very well and our new store performance continued to exceed expectations. In addition, I am particularly pleased with the accelerated level of our expense leveraging, and the significant growth of our operating earnings."

Sales growth owed to a 30.3 percent increase in comparable store sales, as well as the sales from 163 new stores added this fiscal year.

The increase in comparable store sales was due to solid performance throughout the video game category, including continued strength in existing Sony PlayStation 2, Microsoft Xbox and Nintendo GameCube systems.

Significant titles released during the quarter included Madden NFL 2003 and Kingdom Hearts from Electronic Arts, Super Mario Sunshine from Nintendo, Tekken 4 from Namco and controversial Grand Theft Auto: Vice City from Take Two Interactive.

Net earnings for the third quarter totaled $9.8 million, or 16 cents per share, compared to analyst consensus estimates of 14 cents per share. In the prior year third quarter, the company earned $0.3 million, or 1 cent per share.

For the third quarter, EBITDA increased 64 percent to $21.8 million from $13.3 million in the prior year quarter.

GameStop reiterated its fourth quarter earnings per share guidance of 62 cents to 68 cents per share, with a comparable store sales increase of 8 percent to 12 percent.

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