GameStop sales increased 27.7% for the quarter, driven by 20.7% growth in video game sales and the launch of Sony's PlayStation Portable. Same store sales grew 12% for the same period. The retailer expects comparable store sales to range from 5% to 7% for the second quarter.
The retailer's profit increased 23% to 19 cents per share--exceeding the company's first quarter guidance. Wall Street had expected earnings per share of 17 cents on revenue of $452.3 million, according to Thomson Financial. Gamestop says it expect to reap earnings per share of 14 cents to 15 cents for the second quarter.
During the first quarter, GameStop opened 95 new stores and closed 14 stores for a total of 1,908 stores. "We're obviously off to a strong beginning for this fiscal year; we're feeling momentum in the video game business," Fontaine says.
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