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Record Q3 profits for GameStop

Videogame retailer GameStop has announced record third quarter profits, with total sales up 60 per cent to USD 1.61 billion

Videogame retailer GameStop has announced record third quarter profits, with total sales up 60 per cent to USD 1.61 billion.

Third quarter profit was USD 52 million, or USD 0.31 per share, compared to USD 13.6 million, or USD 0.09 per share a year ago.

"During the quarter we opened 181 stores worldwide, surpassing the 5,000 store milestone, and believe that there are many more opportunities for additional store growth," said GameStop chairman and CEO Richard Fontaine.

"Altogether, all signs point towards GameStop having a strong fourth quarter and robust 2007."

Even so, the stock was down in trading after the news, based on a weaker-than-expected Q4 outlook. The company forecast earnings per share of USD 0.95 to 0.97 for the fourth quarter, higher than the prior year but below analyst expectations.

GameStop raised its guidance for the full fiscal year, expecting earnings per share in the USD 1.61 to 1.63 range, with total revenues forecast to grow between 28 and 29 per cent.