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Electronics Boutique Reports First Quarter Results - Comparable Store Sales Up 14.5% - - Total Revenue Increases 36.2% - - EPS is $0.15 Excluding Merger Costs; Ahead of Expectations -.

Article Excerpt
WEST CHESTER, Pa., May 26 /PRNewswire-FirstCall/ -- Electronics Boutique Holdings Corp. , a leading global specialty retailer of video games and related products, today announced financial results for the first quarter ended April 30, 2005.

Financial Results

For the first quarter of fiscal 2006, total revenue increased 36.2% to $507.1 million from $372.4 million in the comparable period last year. Comparable store sales rose 14.5%, with double-digit gains in all markets and particular strength in European stores and domestic strip center locations. The sales growth was driven by strong demand for hardware, particularly Sony's PSP and PS2, as well as a 30.4% increase in total software sales. First quarter gross margin on sales was 26.0% versus 26.9% last year due to the sales mix shift to lower margin hardware.

Excluding costs related to the pending merger with GameStop Corp., net income increased 22.6% to $3.7 million, or $0.15 per diluted share, which was ahead of previously announced expectations. This compares to net income of $3.0 million, or $0.12 per diluted share, in the same period last year. On a GAAP basis, which includes approximately $1.5 million of pre-tax merger- related costs, net income for the first quarter of fiscal 2006 was $2.8 million, or $0.11 per diluted share. Please see the schedule...