Gamestop (NYSE:GMEB)
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GameStop Corp. (NYSE:GME)(NYSE:GME.B), the world’s
largest video game and entertainment software retailer, today reported
sales results for the nine-week holiday period ending December 30, 2006.
Total sales for the nine weeks ended December 30, 2006 were $1,732.8
million, a 29% increase from the prior year holiday period of $1,342.2
million. Comparable store sales for the holiday period increased 23.9%.
R. Richard Fontaine, Chairman and Chief Executive Officer, commented, “Without
question this holiday season was one of the most successful ever for
GameStop. I am particularly pleased with the robust sales of hardware
systems, even in the face of ongoing shortages of PlayStation 3 and Wii.
The diversity of desired products made this a real ‘game
specialist’s holiday’.
It was a season that rewarded the knowledge and advice given by our
seasoned managers and game playing associates throughout the company.”
“We have never had a holiday season with more
hardware choices or more accessory options, and perhaps what is most
encouraging is that, we are seeing a broader base of customers enjoying
the gaming experience than ever before.”
“In addition, we sold a record number of
GameStop gift cards. More gift cards, with a higher average value per
card, will help to ensure that we close out the fiscal year with real
momentum,” concluded Mr. Fontaine.
The top five new video games sold during the holiday period were GEARS
OF WAR from Microsoft, FINAL FANTASY XII from Square Enix, LEGEND OF
ZELDA: TWILIGHT PRINCESS from Nintendo, GUITAR HERO 2 from Activision,
and WWE SMACKDOWN vs. RAW 2007 from THQ.
Updated Guidance
Based primarily on exceptionally strong hardware sales during the
holiday period, GameStop is increasing its comparable store sales
guidance for the fourth quarter of 2006 to range from 22.0% to 23.0%.
Full year comparable store sales are now expected to range from 10.0% to
10.5%.
GameStop is also increasing its fourth quarter diluted earnings per
share guidance to range from $1.58 to $1.60. Full year earnings per
diluted share are now forecasted to range from $2.03 to $2.05.
Note that guidance does not include merger costs related to the business
combination with EB Games, which were $0.05 per diluted share for fiscal
2006, or debt retirement costs, which could range from $0.03 to $0.05
per diluted share for fiscal 2006.
Full year 2006 sales and earnings results and fiscal 2007 earnings
guidance are expected to be released in mid-March 2007.
About GameStop Corp.
Headquartered in Grapevine, TX, GameStop Corp. is the world’s
largest video game and entertainment software retailer. The company
operates 4,633 retail stores across the United States and in fourteen
countries worldwide. The company also owns two e-commerce sites,
GameStop.com and EBgames.com, and Game Informer(R) magazine, a leading
multi-platform video game publication. GameStop Corp. sells new and used
video game software, hardware and accessories for next generation video
game systems from Sony, Nintendo, and Microsoft. In addition, the
company sells PC entertainment software, related accessories and other
merchandise. General information on GameStop Corp. can be obtained at
the company’s corporate website: http://www.gamestop.com/corporate.
Safe Harbor
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements include, but are not limited to, the financial and operating
results for the fourth quarter and full year of fiscal 2006, future
financial and operating results, projected store openings, the company's
plans, objectives, expectations and intentions and other statements that
are not historical facts. Such statements are based upon the current
beliefs and expectations of GameStop's management and are subject to
significant risks and uncertainties. Actual results may differ from
those set forth in the forward-looking statements. The following
factors, among others, could cause actual results to differ from those
set forth in the forward-looking statements: the risk that the cost
savings and other synergies from the combination with Electronics
Boutique may not be fully realized or may take longer to realize than
expected; the inability to obtain sufficient quantities of product to
meet consumer demand, including Sony’s
PlayStation 3 and Nintendo’s Wii; the timing
of release of video game titles for next generation consoles; and
economic and other events that could reduce or impact consumer demand.
Additional factors that could cause GameStop's results to differ
materially from those described in the forward-looking statements can be
found in GameStop’s Annual Report on Form
10-K for the fiscal year ended January 28, 2006 filed with the SEC and
available at the SEC's Internet site at http://www.sec.gov.
GameStop Corp.
Retail Sales Mix
9 weeks
9 weeks
Ended
Ended
December 30, 2006
December 31, 2005
New video game hardware
27.6%
20.1%
New video game software
40.2%
43.9%
Used video game products
17.5%
19.4%
Other
14.7%
16.6%