GameStop holiday strong, raises 4Q outlook

GRAPEVINE, Texas GameStop announced today that it is raising its fourth quarter 2007 comparable-store sales and earning guidance following a strong holiday period.

The company reported that it is raising its fourth quarter 2007 comparable-store guidance from a range of 7% to 9%, to a range of 15.5% to 16.5%. Full year comparable-store sales are now expected to be in a range of 23.5% to 24.5%. The company expects fourth quarter diluted earnings per share guidance to be in a range of $1.09 to $1.10. Full year earnings per diluted share guidance is now forecast to be in a range of $1.75 to $1.76, which is 13 cents per share higher than guidance issued on Nov. 20.

For the nine-week holiday period ending Jan. 5, the GameStop reported total sales of $2.3 billion, a 34.7% increase from the prior year holiday period of $1.7 billion. Comparable-store sales for the holiday period increased 20%.

Richard Fontaine, chairman and ceo, commented, “Driven by robust domestic and international sales, GameStop achieved the most successful holiday season results ever. Video game software sales grew by 45%, while the next generation installed base is now triple last year’s base and a very positive leading indicator for future sales growth.”