GameStop beats estimates; raises full-year outlook
Grapevine, Texas — GameStop’s net income for the second quarter fell to $10.5 million in the year-ago period, but its performance was better than analysts expected. The chain issued a higher-than-expected full-year forecast saying that it expects next-generation gaming consoles to fuel consumer demand.
Total revenue was down 10.7% to $1.38 billion in the quarter ended July 31. Same-store sales dropped 10.7%
“During this console transition period, our financial results have been supported by the continued growth of our emerging businesses,” said Gamestop CEO Paul Raines said in a statement. “Of course, excitement continues to build for the upcoming new games and the launch of the PS4 and Xbox One. As the global gaming leader, GameStop is uniquely positioned to capitalize on the new, innovative products coming to market.”
Stein Mart Q2 profit jumps 48% on same-store sales
Jacksonville, Fla. — Stein Mart Inc. reported that its second-quarter net income increased 48%, helped by higher same-store sales. The retailer also announced that the SEC is conducting an investigation related to Stein Mart’s restatement of prior years’ financial statements and its change in its auditors.
For the quarter ended Aug. 3, Stein Mart earned $3.4 million up from $2.3 million in the same quarter of 2012.
Revenue increased 4%, to $291 million from $280.4 million. Same-store sales rose 6.4%.
Analysts, on average, expected a profit of 8 cents per share on $295.5 million in revenue, according to FactSet.
Dollar Tree Q2 profit up 4.6%
Chesapeake, Va. — Dollar Tree Inc. reported that its fiscal second-quarter earnings rose 4.6% to $124.7 million on higher customer traffic and average ticket prices. The company raised the lower end of its sales and earnings forecasts for fiscal 2013
Bob Sasser, CEO of Dollar Tree said: “Sales, customer traffic, average ticket, earnings and operating margin all continue to grow. Customers are responding in record numbers to our outstanding values in both discretionary and consumable merchandise categories. Our stores are well-stocked with a terrific merchandise presentation for back-to-school and the fall selling season.”
For the quarter ended Aug. 3, Dollar Tree’s sales rose 8.8% to $1.85 billion. Same-store sales rose 3.7%.
During the quarter, Dollar Tree opened 81 stores, expanded or relocated 32 stores, and closed two stores. Retail selling square footage increased 7.0% compared to a year ago, to 41.9 million sq. ft.