GameStop reports strong 2Q, raises FY guidance

GRAPEVINE, Texas GameStop reported that net earnings were $57.2 million for the second quarter of 2008, compared to net earnings of $21.8 million for the second quarter of 2007, an increase of 162.1%. Diluted earnings per share were 34 cents, compared to 13 cents in the prior year quarter, exceeding the high-end of previously released guidance by 6 cents per share.

GameStop sales increased 34.8% to $1.8 billion in the second quarter, compared to $1.3 billion in the prior year quarter. Comparable-store sales increased 20% during the second quarter as new video game software sales grew 43%.

Based on the stronger than expected results in the second quarter of 2008 and increased confidence in the second half video game line-up, GameStop is increasing its fiscal 2008 guidance. Full year diluted earnings per share are now forecast to range from $2.45 to $2.50, representing a +36% to +39% growth rate over last year. Comparable-store sales are projected to increase between +12% and +14% for the full year, with total sales growing between +23% and +25%.