West Chester, Pa. - Electronics Boutique Holdings posted increased sales and moved its net income into the black during its fiscal second quarter.
The company, which is dedicated exclusively to video game hardware, software and PC entertainment software and accessories, recorded a 38.3 percent increase in total revenue, hitting $262.6 million, up from $189.9 million in the year-ago period. Comparable-store sales climbed 20.3 percent in the three months, primarily due to significant sales strength from PlayStation2, Xbox and GameCube hardware, as well as new and used software sales for each of these systems.
Net income for the second quarter, ended Aug. 3, reached $696,000, wiping out a net loss of $1.5 million reported in the same period last year.
On a pro forma basis, excluding results of operations and related expenses associated with the company's closed EB Kids stores and potential sale of its BC Sports Collectibles business, second-quarter revenue was $259.1 million, compared with $184 million a year ago. Pro forma net income for the second quarter was $1.1 million, compared with a net loss of $589,000 in the same three months in 2001.
'Results in the second quarter reflect continued momentum within the video game industry, which has greatly benefited from late May price cuts on all three major hardware consoles,' said Jeff Griffiths, president/CEO.
Electronics Boutique reported domestic video game sales growth of 46.3 percent in the second quarter, compared with the 24.5 percent increase for the industry reported by The NPD Group, according to the retailer.
For the six months, total revenue climbed 31.8 percent, reaching $500.3 million, up from $379.5 million in the same period last year. The retailer reported net revenue of $1.3 million in the six months, compared with a net loss of $3 million in the same six months in 2001.
Looking ahead, Electronics Boutique said the growing installed base for hardware across expanding demographics bodes well for the second half of its fiscal year.
Entering the holiday season, the retailer anticipates that the growing roster of software titles, coupled with an attractive price point for hardware consoles, will help the industry achieve global sales of video game hardware and software of an estimated $30 billion this year, as forecasted by one industry watchdog group.