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GameStop Corp. Reports 21.0% Increase in Holiday Sales; Holiday Comparable Store Sales Increase 4.9%; Video Game Software Grows 29%; Updates 2003 Earnings Guidance

GRAPEVINE, Texas--(BUSINESS WIRE)--Jan. 7, 2004--GameStop Corp. (NYSE:GME), the nation's largest video game and entertainment software specialty retailer, today reported sales results for the nine-week holiday period ending January 3, 2004.

Total sales for the nine-weeks ended January 3, 2004, totaled $508.6 million, a 21.0% increase from the prior year holiday period of $420.4 million. Comparable store sales increased 4.9% for the same period, as video game software sales surged 29%, and sales of video game consoles and handhelds were above previous expectations.

Total sales for the 48 weeks ended January 3, 2004, totaled $1,462.1 million, a 16.7% increase from the prior year period of $1,252.8 million. Comparable store sales increased 1.0% for the year to date period.

With a significantly increased installed base of video game consoles, video game software sales increased 29% during the holiday period, fueled by strong sales of games such as Need for Speed: Underground from Electronic Arts, Mario Kart: Double Dash from Nintendo of America, Final Fantasy X-2 from Square Enix, True Crime: Streets of L.A. from Activision, and SOCOM II from Sony Computer Entertainment of America.

Based on sales trends to date in the quarter, we now expect comparable store sales will be in the +2.0% to +3.0% range for the fourth quarter, which exceeds our previously-released guidance of -2.0% to +2.0%. Diluted earnings per share for the fourth quarter are now expected to be between $0.65 and $0.66, and full fiscal year 2003 diluted earnings per share are expected to be between $1.04 and $1.05, which is at the high end of our previously-released guidance.

Full year sales results for fiscal 2003 are expected to be released on February 18, 2004.

About GameStop Corp.

Headquartered in Grapevine, TX, GameStop Corp. (NYSE:GME), is the nation's largest video game and entertainment software specialty retailer. The company operates over 1,500 retail stores throughout 49 states, Puerto Rico and Ireland, primarily under the GameStop(R) brand. In addition, the company owns a commerce-enabled Web property, GameStop.com, and Game Informer magazine, a leading video and computer game publication.

GameStop Corp. sells the most popular new software, hardware and game accessories for the PC and next generation video game systems from Sony, Nintendo, and Microsoft, and is also the industry's largest reseller of used video games. In addition, the company sells computer and video game magazines and strategy guides, action figures, and other related merchandise to more than 30 million customers.

Barnes and Noble, Inc. (NYSE:BKS), the world's largest bookseller, has approximately a 65 percent interest in GameStop. General information on GameStop Corp. can be obtained via the Internet by visiting the company's corporate Website: http://www.gamestop.com/investor-relations.

SAFE HARBOR

This press release (including any attached schedules) contains "forward-looking statements." GameStop Corp. is including this statement for the express purpose of availing itself of the protections of the safe harbor provided by the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements. These forward-looking statements are based on currently available information and represent the beliefs of the management of the company. These statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, general economic and market conditions, seasonality, decreased consumer demand for the company's products, possible disruptions in the company's computer or telephone systems, possible work stoppages or increases in labor costs, possible increases in shipping rates or interruptions in shipping service, effects of competition, possible disruptions or delays in the opening of new stores or the inability to obtain suitable sites for new stores, higher than anticipated store closing or relocation costs, higher interest rates, the performance of the company's online and other initiatives, the successful integration of acquired businesses, unanticipated increases in merchandise or occupancy costs, unanticipated adverse litigation results or effects, product shortages, and other factors which may be outside of the company's control. In addition, the video game industry has historically been cyclical in nature and dependent upon the introduction of new generation systems and related interactive software. Please refer to the company's reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially.

                            GameStop Corp.
                           Retail Sales Mix

                                    9 weeks ended     9 weeks ended
                                   January 3, 2004   January 4, 2003
                                   ---------------- -----------------

Video Game Hardware                       19%               20%
Video Game Software                       63%               58%
Video Game Accessories                    12%               13%
PC Software                                4%               5%
PC Accessories and Other                   2%               4%

CONTACT: GameStop Corp.
Media Contact
Lori M. Milovich, 817-424-2130
Director, Public & Investor Relations
or
Investor Contact
David W. Carlson, 817-424-2130
Executive Vice President & Chief Financial Officer

SOURCE: GameStop Corp.