Game Stop kicked ass

Total global sales for the second quarter of 2014 were $1.73 billion, a 25.1% increase compared to $1.38 billion in the prior year quarter. Consolidated comparable store sales increased 21.9%.
During the quarter, new hardware sales increased 124.8%, as worldwide demand for Microsofts Xbox One and Sonys PlayStation 4 remains very high. New software sales grew 15.6% driven by the strong performance of recently released new titles, such as Ubisofts Watch Dogs and Nintendos Mario Kart 8. Each of these categories outperformed the overall market, leading to 200 basis points of total market share gain. The pre-owned/value category saw positive growth, +5.5%, for the second consecutive quarter.
Sales in the mobile & consumer electronics category rose 85.1%, led by the ongoing expansion and strong results of Spring Mobile and Simply Mac. The Technology Brands segment contributed 19% of the companys second quarters operating profit.
Non-GAAP digital receipts increased 17.6% to $179.2 million, or $52.3 million of sales on a GAAP basis, led by strong platform currency, mobile and global Steam Wallet sales.
Global multichannel sales (mobile, web-in-store, pick-up at store, ecommerce) advanced 49.3% as customers utilized all of the channels GameStop offers to purchase video gaming and mobile electronic products.
GameStops net earnings for the second quarter were $24.6 million, a 134.3% increase compared to net earnings of $10.5 million in the prior year quarter. Diluted earnings per share were $0.22, a 144.4% increase compared to diluted earnings per share of $0.09 in the prior year quarter.
The second quarter demonstrates the power of the new console cycle and all of our business units, including Technology Brands, positively contributing to the companys sales and profits, stated Rob Lloyd, chief financial officer. The back half of the year is filled with exciting games and products coming to market and I am confident that we are prepared to capitalize on these opportunities.
Capital Allocation Update
During the second quarter of 2014, the company repurchased 1.90 million shares at an average price of $39.67, or $75.5 million of stock. There is now $329.4 million remaining on the existing repurchase authorization.
GameStops board of directors also declared a quarterly cash dividend of $0.33 per common share payable on September 16, 2014, to shareholders of record as of the close of business on September 3, 2014.
Earnings Guidance
For the third quarter of fiscal 2014, GameStop expects comparable store sales to range from +1.0% to +5.0%.
Diluted earnings per share are expected to range from $0.58 to $0.64, representing flat to +10.3% growth over the prior year quarter.
For fiscal year 2014, the company is maintaining its previously announced full year diluted earnings per share guidance range of $3.40 to $3.70. Full year comparable store sales are expected to range from +6.0% to +12.0%.