GameStop Corp. (GME) announced its capital allocation strategy, which will provide ample investment capital for continued aggressive new store expansion worldwide and allow GameStop to enhance shareholder value through a $300 million share repurchase program approved by its board. Purchases will be executed according to market conditions. The impact of the entire $300 million buyback at current share price would result in accretion to earnings per share of about 10%.
The company believes its cash flow will remain at or above existing levels for the year ahead and believes the video game industry and GameStop will continue to grow in the years to come.
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