GameStop plays up pre-owned sales as comps dip 9.1%
GRAPEVINE, Texas — GameStop reported a same-store sales decline of 9.1% for the second quarter on slow hardware sales and a lighter software slate than the prior year quarter. Despite the poor performance in new hardware and software, the company said pre-owned sales were strong for the quarter.
Total sales for the second quarter of 2011 were $1.74 billion, a decrease of 3.1% compared to $1.80 billion in the prior year quarter.
The company reported net earnings of $30.9 million compared with $40.3 million in the prior year quarter.. Diluted earnings per share were in-line with guidance at 22 cents compared with 26 cents in the prior year quarter.
Paul Raines, chief executive officer, stated, "GameStop's resilient retail model enabled us to achieve our earnings plan despite a challenging period for the industry. Through the back half of the year, we expect industry software sales to accelerate based on an exciting title line-up. Meanwhile, the digital and loyalty programs we have brought to market continue to gain traction with consumers and position us as a leading partner with publishers."
For the third quarter of fiscal 2011, the company expects comparable-store sales to range from 2% to 4%. Diluted earnings per share are expected to range from 38 cents to 41 cents.