GameStop Q2 Record Sales on NCAA, Star Wars
GameStop, one of AmericaÃ¢â‚¬â„¢s largest video game retailers, reported record sales and earnings for the second quarter of 2005, ending July 30, despite setbacks from GTA: San Andreas. GameStop sales increased 20.3% to $415.9 million in the second quarter of 2005, compared with $345.6 million in the prior year’s 2nd quarter.
Video game software sales remained solid, increasing by 16%, with leading titles such as NCAA Football 2006 (PS2 and Xbox) from Electronic Arts, Star Wars Episode III: Revenge of the Sith from Lucas Arts, and Pokemon Emerald from Nintendo. The Sony PlayStation Portable (PSP) continued to be an important driver of comparable store sales, which increased 6.2% during the second quarter.
Net earnings for the second quarter increased to $7.9 million, compared with net earnings of $7.7 million in the prior year quarter. As previously reported, second quarter earnings include a $1.1 million write-off of used Grand Theft Auto: San Andreas inventory, due to a retroactive ratings change from Mature to Adults Onl” by the ESRB, and the pulling of the product from sale in stores.
“We are pleased with our second quarter results,” said R. Richard Fontaine, Chairman and CEO. “I am particularly encouraged that we continued to execute our business plan and focus on our customers in light of the very exciting, and potentially distracting, announcement regarding our pending merger with Electronics Boutique. Sales grew over 20% during the quarter with the used catalogue showing strength in the face of a relatively slow quarter for new title releases. Hardware sales were very robust and grew over 40% from the prior year, driven by in-stock positions on all console and hand-held platforms.”