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GameStop Holiday Period Comps. Up 1.5%; Reiterates Annual Earnings Guidance

GameStop Corp. (GME) reported, for the for the nine-week holiday period ended January 5, 2019, total global sales were $2.63 billion, a 5.0% decrease compared to the prior year nine-week holiday period ended December 30, 2017. Total comparable store sales increased 1.5%, including a 3.6% increase in the U.S. partially offset by a 3.1% decrease internationally.

For the period, new hardware sales decreased 6.1%, as a result of the successful Xbox One X launch in the 2017 holiday period, partially offset by strong growth in Nintendo Switch sales. The company reported that sales of new video game software decreased 8.3%, driven primarily by the difference in launch timing of Activision's Call of Duty: Black Ops 4 which released in October 2018, compared to Call of Duty: WWII which released in November 2017.

For fiscal 2018, the company reiterated its previously announced annual guidance for adjusted earnings per share of $2.55 to $2.75. Comparable store sales are expected to be approximately flat for the fiscal year.

GameStop Corp. anticipates that its Spring Mobile business will generate approximately $75 million - $85 million of adjusted operating earnings in fiscal 2018. The sale of the business was completed on January 16, 2019. The company noted that its guidance includes the results of the Spring Mobile business, which will be classified as discontinued operations for fiscal 2018.

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