GameStop a winner in Q2

Grapevine, Texas – GameStop Corp. on Thursday posted a strong second quarter, with profit and revenue that topped analysts’ estimates.

The retailer’s net income rose 3% to $25.3 million from $24.6 million.

One-time costs related to GameStop’s acquisition of online retailer GeekNet Inc., as well as its expansion of its technology brands division (including Simply Mac, Spring Mobile and Cricket Wireless stores), hampered further profit growth.

Total global sales rose 2% to $1.76 billion from $1.73 billion, and consolidated global same-store sales increased 8.1% (10.8% in the U.S. and 1.8% internationally).

Sales in the mobile and consumer electronics and collectibles category drove overall sales growth, while new video game hardware and software sales fell. Pre-owned video game sales rose slightly.

“Results for the second quarter again exceeded our expectations, reflecting the mix of sales in our market-leading video game business and the continuing success of our diversified segments,” said Paul Raines, CEO.

For the third quarter of fiscal 2015, GameStop expects same-store sales growth to range from 1-4%. Diluted earnings per share are expected to range from $0.53 to $0.60, compared to adjusted diluted earnings per share of $0.57 in the prior year quarter.

For fiscal year 2015, the company is raising its previously announced full year adjusted diluted earnings per share guidance range to $3.66 to $3.86 to account for the reduction in shares outstanding. Full year same-store sales are now expected to range from 2% to 7% above the prior year.