Video game and accessories retailer GameStop Corp. (NYSE: GME) posted earnings on Tuesday, stating same-store sales jumped more than 26 percent in the quarter.
The retailer earned $129.8 million, or 81 cents a share in its fiscal fourth quarter, up from $85 million, or 55 cents a share the previous year. Analysts polled by Thompson Financial expected earnings of 80 per share.
GameStop sales were $5,318.9 million for fiscal 2006, an increase of 72 percent over fiscal 2005 sales of $3,091.8 million. On a comparable store basis, sales increased 11.9% during fiscal 2006. Quarterly revenue was $2.30 billion, compared to $1.67 billion a year earlier.
By any retail measurement, a remarkable year, R. Richard Fontaine, GameStop's Chairman and Chief Executive Officer said in a statement.
The company expects 2008 sales to grow between 19 and 21 percents, backed by strong expected releases of next generation games. For the year, the company expects to earn $1.37 to $1.40 a share.
Shares rallied, closing up 11.4 percent, or $3.19 to $31.16 in trading on the New York Stock Exchange.