GameStop Q2 Earnings Jump By 162%
Any quarter than includes the likes of Metal Gear Solid 4: Guns of the Patriots and Grand Theft Auto IV is likely to be a big one for video game retailers. And boy, did GameStop benefit big time.
According to GameDaily, GameStop has revealed its fiscal financial results for the three-month period ending on August 2. Not surprisingly, sales were up - way up - thanks to the aforementioned titles; overall sales increased by more than one-third in a year-over-year comparison. The total number came in at $1.80 billion, and earnings rocketed up by 162%. Said R. Richard Fontaine, Chairman and CEO of GameStop:
"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."
In addition to MGS4 and GTAIV, the company also mentioned NCAA Football 09, Battlefield: Bad Company, and Wii Fit as big movers for the quarter. As a result of this growth, GameStop has raised its projections for the remainder of fiscal 2008; they now expect a growth of between 12 and 14% by the time the fiscal year ends in March 2009, and they predict total company sales will go up 23-25% during that time period. Yes indeed, things are going well for the world's largest game retailer. Fontaine finished-
"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."
8/21/2008 John Shepard