GameStop Up 8% On Holidays Sales Report, Q4 Guidance

GameStop Corp. GME reported sales results Tuesday for the nine-week holiday period ended January 3, 2015.

Total global sales for the holiday period were $2.94 billion, a 6.7 percent decline compared to the 2013 holiday sales period, or -4.0 percent in constant currency.

Total comparable store sales decreased 3.1 percent, comprised of -3.3 percent in the U.S. and -2.7 percent internationally.

Paul Raines, chief executive officer, stated, “During the holiday period, consumer demand for video games was strong, resulting in new software sales growth. We expect that trend to continue into the first quarter. Overall, each of our business units performed well giving us positive momentum as we look toward 2015.”

Based on the holiday sales results, GameStop reiterated its previously announced fourth quarter and full year earnings per share guidance ranges of $2.08 to $2.24 and $3.40 to $3.55, respectively. Analysts had forecasted EPS of $2.16 for Q4 and $3.49 for the year.

GameStop now expects comparable store sales for the fourth quarter and the full year to range from -2.5 percent to -1.0 percent and 3.0 percent to 4.0 percent, respectively.

GameStop traded at $35.50 in the after-hours session, up 8 percent.