West Chester, Pa. - Specialty retailer Electronics Boutique posted a 27.7 percent increase in fiscal first quarter revenue, hitting $303.5 million, up from $237.6 million in the year-ago period.
First quarter comp-store sales jumped 10.1 percent, driven by a 34.9 percent increase in domestic software sales and continued strong hardware unit sales.
The video game retailer recorded $3.2 million in net income for the three months, ended May 3, compared with net income - before the cumulative effect of a change in accounting principle, relating to the recognition of vendor allowances - of $1.5 million in the same quarter last year.
When factoring in the cumulative effect of change in accounting principle, net of tax, the company sustained a net loss of $3.3 million in the fiscal first quarter of 2002. Adjusted total revenue slipped to $231.5 million for the same three months.
Looking ahead, Electronics Boutique anticipates a second quarter decrease in comp-store sales, ranging from 5 percent to 9 percent. The company attributes this slide to hardware manufacturers not aggressively cutting prices on consoles as they did in the same three months last year. This year's more modest price cuts are not expected to materially increase the hardware unit sales activity the retailer has been experiencing to date.
For the 12 months, Electronics Boutique expects a revenue increase in the range of 14 percent to 19 percent, with comp-store sales moving upward in the range of 4 percent to 6 percent.
During the first quarter, the company opened 75 new stores, increasing total store count to 1,217, compared with 948 year over year. In the current plan, 275 new stores are expected to open during the current fiscal year.