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Tuesday, March 18, 2008

GameStop Rakes in $7.1 bln in 2007

The Grapevine, Tex.-based company reported fiscal 2007 sales of $7.1 billion for the year ended February 2, up 33 percent over the prior year.

Net earnings were $288.3 million versus $158.3 million, an 82.1 percent increase (this year was one week shorter than last). Operating earnings were up 50 percent to $501.42 million.

For the fourth fiscal quarter, GameStop reported sales of $2.87 billion, with comparable store sales rising 17.4 percent during the period. Net earnings were $189.8 million, up 46.2 percent, while quarterly operating earnings were up 30 percent to $293.15 million

New videogame software sales rose 38.4 percent, led by the top five-selling titles, Call of Duty 4, Rock Band, Assassin's Creed, Super Mario Galaxy and Guitar Hero III.

GameStop also said that it opened 586 stores during the fiscal year. GameStop chief exec R. Richard Fontaine said in a statement, "Prospects for the 575-600 new store openings in 2008 look very promising even with the current concerns about the US economy. As one of the few American retailers actively seeking many new sites, GameStop is positioned to secure better locations with more advantageous lease terms and is more frequently being viewed as a critical brand to anchor strip centers."

The company forecast first quarter comparable store sales to grow between 24 and 25 percent. Earnings per share during the quarter are expected to be between 32 and 33 cents.

GameStop forecast fiscal 2008 sales growth of between 19 and 21 percent, with comparable store sales growth of 10 to 12 percent.

Full year earnings for 2008 are forecast to range from $2.25 to $2.34.


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