GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME), the world’s largest multichannel video game retailer, today reported sales results for the nine-week holiday period ended Dec. 31, 2011.
Total sales for the period were $3.02 billion, a slight increase compared to the 2010 holiday sales period. Total company comparable store sales decreased 0.3%, composed of an increase of 0.3% in the U.S. offset by a decrease of 1.5% internationally. Digital sales, which are included in the Other category, grew 60%, led by Call of Duty ELITE subscriptions for downloadable content.
For the holiday period, total company sales of new video game software increased 9.9%, driven by strong sell-through of PlayStation 3 and Xbox 360 titles, such as Activision’s Call of Duty: Modern Warfare 3, Bethesda’s Elder Scrolls V: Skyrim and Ubisoft’s Assassin’s Creed: Revelations. New hardware sales declined 19.6% as there were no new console products or low enough price points to stimulate consumer demand as in 2010.
The pre-owned category increased 3.5% over last year’s holiday period and 7.0% year-to-date, indicating that customers continue to respond positively to GameStop’s value proposition.
The tablet and pre-owned mobile initiatives continue to resonate with consumers both online and in-store. During the holiday sales period, trades of mobile devices were 4% of total company trade volume. An assortment of these products is now available for sale in 460 U.S. stores and tablets are available in 200 U.S. stores and at www.GameStop.com.
Paul Raines, chief executive officer, commented, "During the holiday, our solid sales performance of new high-def console software was offset by weak Wii software sales and hardware sales due to the lack of new hardware offerings versus the 2010 period. We were pleased with the performance of our buy-sell-trade business, digital offerings and mobile initiatives. GameStop also retired the remainder of its long-term debt establishing a debt-free balance sheet as we go into 2012."
Share Repurchase Update
During the holiday period, GameStop repurchased two million shares at an average price of $22.38, or $45.2 million worth of stock. On Dec. 16, 2011, the company also retired the remaining $125 million of its senior notes. As of today, the company has approximately $329.8 million remaining of its current share repurchase authorization.
Based on the holiday sales results, GameStop now expects comparable store sales for both the fourth quarter and the full year to range from -2.0% to -1.0%. GameStop is reiterating its previously announced fourth quarter and full year earnings per share guidance ranges of $1.66 to $1.76 and $2.82 to $2.92, respectively, excluding debt retirement costs.
Full year 2011 sales and earnings results and fiscal 2012 earnings guidance are expected to be released in March 2012.
Note: GameStop will be presenting at the CES mini conference hosted by Credit Suisse and Oppenheimer & Co. on Tuesday, Jan. 10, 2012 at 9:00 a.m. PT in Las Vegas, NV. This presentation will be available via dial-in at 1-888-289-7292 or by visiting http://investor.GameStop.com.
GameStop Corp. (NYSE: GME), 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 6,627 company-operated stores in 17 countries worldwide and online at www.GameStop.com. The network also includes: www.Kongregate.com, a leading browser-based game site; Game Informer(R) magazine, the leading multi-platform video game publication; Spawn Labs, a streaming technology company; and a digital PC game distribution platform available at http://www.GameStop.com/PC.
General information on GameStop Corp. can be obtained at the company's corporate website. Follow GameStop on Twitter @ www.twitter.com/GameStop and find GameStop on Facebook @ www.facebook.com/GameStop.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, the outlook for fiscal 2011, future financial and operating results, projected store openings, the company's plans, objectives, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of GameStop's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. GameStop undertakes no obligation to publicly update or revise any forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the inability to obtain sufficient quantities of product to meet consumer demand, including console hardware and accessories; the timing of release of video game titles for current generation consoles; the profitability of our international operations and the risks associated with those operations, including those related to global economic conditions; the risks associated with successfully integrating acquisitions; the impact of increased competition and changing technology in the video game industry, including browser and mobile games and alternative methods of distribution; possible impairment or other charges in connection with any changes of our operations, and economic, regulatory and other events, including litigation, that could reduce or impact consumer demand or affect the company’s business. Additional factors that could cause GameStop's results to differ materially from those described in the forward-looking statements can be found in GameStop's Annual Report on Form 10-K for the fiscal year ended Jan. 29, 2011 filed with the SEC and available at the SEC's Internet site at http://www.sec.gov or http://investor.GameStop.com.