Sales up 23 percent for the quarter; but higher costs take bite out of profits.
Electronics Boutique today announced record financial results for its fiscal first quarter ending May 1, 2004. The 13-week period saw EB tally sales of $372.4 million, up 23 percent from the same period a year earlier. The company also said it continued to gain market share among game retailers.
However, the companys operating costs also jumped, by 28 percent for the most recent quarter. Impact on the bottom line resulted in profits that were $126,000 less than the same quarter a year earlier. The company reported profits of $3.046 million for the quarter, compared to $3.172 million the year earlier.
EB attributes its strong Q1 performance to a 28 percent increase in total video game software sales, as well as a 19 percent increase in total hardware sales, compared to the first fiscal quarter of last year. Comparable store sales in Q1 fell by 2.5 percent, which was in line with EBs expectations. The company noted that last years Q1 sales were particularly strong thanks to the launch of the GBA SP and the release of The Legend of Zelda: The Wind Waker.
EB expects its total sales for the full fiscal year 2005 to increase by between 17 and 21 percent (to $1.87 billion to $1.94 billion) over the previous year.
News source: Gamespot