GameStop Splits Chairman, CEO Functions
New York City GameStop Corp. is splitting its chairman and CEO functions, a decision that supports a new management reorganization designed to support the company’s rapid expansion into 16 countries.
As part of the changes, R. Richard Fontaine, who has served as chairman and CEO since the company’s inception in 1996, will relinquish his CEO title. As executive chairman, Fontaine will focus on international operations, acquisitions and strategic development.
The company’s operating chief, Daniel A. DeMatteo, will assume the role of CEO. DeMatteo has been the COO since 1996, and vice chairman and COO since 2004.
In addition, J. Paul Raines, the former executive VP of U.S. stores for The Home Depot Inc., will become the company’s new COO, effective Sept. 7.
The company believes that unprecedented growth of new video game hardware during 2007 and 2008, combined with significant industry investment and a promising title lineup, will drive new video game software sales to double-digit growth.
Zale reports 2Q loss
DALLAS Zale Corp. reported a net loss from continuing operations for the fourth quarter of fiscal 2008 of $4.9 million, or 15 cents per share, compared to net earnings from continuing operations of $0.7 million, or 1 cent per diluted share, for the fourth quarter of fiscal 2007.
Revenues for the fourth quarter ended July 31 were $456 million compared to $430 million last year, an increase of 6.1%. Comparable store sales for the fourth quarter increased 6.1%.
For the full year ended July 31, 2009, the company expects diluted EPS in the range of $1.10 to $1.25. Comparable-store sales are expected to be in the range of negative 1% to flat.
DSW posts 2Q sales, income growth
COLUMBUS, Ohio DSW announced net income of $11 million on net sales of $357.2 million for the second quarter ended Aug. 2, compared with net income of $6.5 million on net sales of $348.7 million for the second quarter ended Aug. 4, 2007. Same-store sales decreased 6.9% for the comparable period versus an increase of 5.9% last year.
Diluted earnings per share were 25 cents for the second quarter this year compared with 15 cents last year. The company said the year-over-year increase in second quarter earnings was attributed to merchandise margin rate.
For the fiscal year ending Jan. 31, 2009, the company reiterates its estimated annual same-store sales in the negative mid-single digits and annual earnings per diluted share in the range of 75 cents to 85 cents.