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GameStop raises full-year guidance after beating expectations for Q3

Above: GameStop at midnight for the launch of a new game.

Image Credit: GameStop

Retailer GameStop’s game is in better than expected shape for its third quarter.

The company reported $2.11 billion in global sales for the quarter, which is up 18.8 percent from $1.77 billion in Q3 2012. GameStop also reported a diluted earnings per share of 58 cents, which beat its guidance by 3 cents.

New software sales were one of GameStop’s key drivers. Grand Theft Auto V and other big fall titles helped increase new-game sales by 43.1 percent. Hardware did well at the retail chain as well. Nintendo’s 3DS and 2DS systems helped increase hardware sales at GameStop by 15.3 percent.

GameStop’s mobile and digital business — both still in their infancy — also grew year-over-year. The company’s mobile business rose 14.4 percent to $49.9 million and its digital sales grew 8.6 percent to $137.9 million.

Only GameStop’s used games slipped during Q3. The company noted that used sales were down 2 percent. That trend could reverse in Q4 when gamers could potentially resort to trading in old games and hardware to upgrade to the new Xbox One and PlayStation 4 consoles.

“Our strong third quarter sales results give us great momentum as we enter the new console cycle,” GameStop chief executive officer Paul Raines said in a statement. “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.”

Going forward, GameStop is raising its full-year guidance from a range of $3-$3.20 to  $3.08-$3.27. The company also advised a range of $1.97-$2.14 diluted earnings per share for Q4.

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More information:

GameStop Corp., a Fortune 500 and S&P 500 company headquartered in Grapevine, Texas, is the world's largest multichannel video game retailer. GameStop's retail network and family of brands include 6,544 company-operated stores in 15 co... read more »

Tony D. Bartel is President of GameStop, a role he has held since June 2010. He served as the Executive Vice President of Merchandising and Marketing. Prior to that, Mr. Bartel was the Senior Vice President of International Finance,... read more »

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