WASHINGTON (dpa-AFX) - GameStop Corp (GME) on Thursday reported an increase in second-quarter profit, driven by strong same-store sales growth and improved margins, partly offset by a stronger dollar and one-time charges. Both earnings and sales surpassed Wall Street estimates.
The video-game retailer lifted its guidance for 2015. GameStop shares gained about 2 percent in after-hours trade on the New York Stock Exchange.
The quarterly results reflect the sales mix of the company's video game business and the success of its diversified segments, said CEO Paul Raines.
GameStop, based in Grapevine, Texas, reported second-quarter net earnings of $25.3 million or $0.24 per share, compared with $24.6 million or $0.22 per share last year.
Excluding costs to complete the Geeknet acquisition and the Technology Brands expansion, GameStop's adjusted earnings for the quarter were $0.31 per share.
On average, 17 analysts poled by Thomson Reuters expected earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter rose 1.8 percent to $1.76 billion from $1.73 billion a year ago. Sixteen analysts had a consensus revenue estimate of $1.74 billion.
On a constant currency basis, sales were up 7.4 percent, the company said.
GameStop's same-store store sales up 8.1 percent, with 10.8 percent growth in the U.S. and 1.8 percent increase internationally.
The company saw growth across video game accesories, mobile and consumer electronics, pre-owned and value video game products and other businesses, while sales of new video game hardware and software slackened.
Gross margin for the quarter improved to 32.9 percent from 31.8 percent last year, and operating margin rose to 2.9 percent from 2.1 percent.
For the third quarter, GameStop expects earnings of $0.53 to $0.60 per share, while analysts expect $0.59 per share.
For the fiscal year 2015, the company now expects adjusted earnings of $3.66 to $3.86 per share, from prior guidance of $3.63 to $3.83 per share, reflecting the reduction in shares outstanding. Analysts expect earnings of $3.88 per share.
GameStop expects third-quarter same-store sales growth of 1 percent to 4 percent. It now expects fiscal 2015 same-store sales growth of 2 percent to 7 percent, from prior guidance of 1 percent to 6 percent.
GME closed Thursday at $46.20, up $0.84 or 1.85%, on the NYSE. In after hours, the stock gained $0.80 or 1.73% at $47.00.
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