GameStop Reports Third Quarter 2013 Results

Gamestop Corp. (NYSE: GME) reported earnings results for the third quarter ended Nov. 2, 2013.

Third Quarter Results

Total global sales were $2.11 billion, an increase of 18.8%. Consolidated comparable store sales rose 20.5%, significantly above the forecasted range.

Sales of new software increased by 43.1%, driven by the strong performance of Rockstar Games’ Grand Theft Auto V. New hardware sales grew 15.3%, led by strong sell-thru of Nintendo 2DS and 3DS. Pre-owned sales decreased 2.0%.

Our new businesses, mobile and digital, had sales and receipts growth of 14.4% and 8.6%.

GameStop’s net earnings were $68.6 million, a 45.3% increase compared to adjusted net income of $47.2 million last year. Diluted EPS were $0.58, exceeding the high end of the company’s guidance by $0.03.

"Our strong third quarter sales results give us great momentum as we enter the new console cycle,” stated Paul Raines, chief executive officer. "Consumer appetite for the new consoles is very strong judging by last week’s successful PS4 launch and the excitement for tonight’s Xbox One launch event. Globally, we are executing our unique playbook to maximize our position of strength.”

Buyback Update

GameStop repurchased approximately 1.84 million shares or $94.4 million worth of stock. Its board of directors also approved a new $500 million share repurchase plan, replacing the existing authorization.

The board of directors declared a cash dividend of $0.275 per common share payable on Dec. 19, 2013 to shareholders of record at the close of business on Dec. 4, 2013.

Q4 Guidance

For the fourth quarter, comparable store sales are expected to range from +2.0% to +9.0%.

Diluted EPS are expected to range from $1.97 to $2.14.

For fiscal year 2013, diluted EPS are expected to range from $3.08 to $3.25.

Full year comparable store sales are expected to range from +1.5% to +4.5%.

Conference Call Information

GameStop will host its earnings conference call at 10:00 a.m. CT on Nov. 21, 2013.

Dial-in details: 800-768-6569; pass code is 2692190. The call and a full release, including financial statements, can be accessed at http://investor.GameStop.com/.

About GameStop

GameStop Corp. (GME), a Fortune 500 company, is the world's largest multichannel video game retailer. GameStop’s global network includes 6,488 retail stores in 15 countries and www.GameStop.com.