The shares of the video game products retailer, GameStop Corp. (NYSE:GME), jumped 6.50 percent in the extended hour trading session pushing the shares to $34.90. The jump in share prices is primarily a result of the higher same-store sales of the company in December 2014. GameStop registered an increase of 4.4 percent in its same-store sale in December.
The video game retailer reported the sales for 2014 Holiday Season with net sales of $2.94 billion, which is 6.7 percent lower than the previous year period. The company lost its November comparable store sales by 12.0 percent but the figures were 4.4 percent up for December. Some of the most popular products during the holiday season included Rockstar’s Grand Theft Auto V, Activision’s Call of Duty: Advanced Warfare and Ubisoft’s Far Cry 4.
While talking about the holiday season sales, Paul Raines, CEO of GameStop Corp. (NYSE:GME), said,
“During the holiday period, consumer demand for video games was strong, resulting in new software sales growth. We expect that trend to continue into the first quarter. Overall, each of our business units performed well giving us positive momentum as we look toward 2015.”
Some of the other categories showing an increase in sales during the holiday season included software (5.8 percent growth) and mobile & consumer electronics (28 percent growth). At the same time, GameStop Corp. (NYSE:GME) reported an increase of 42.8 percent in its non-GAAP digital receipts.
The video game retailer lowered its estimates for comparable store sales decline to stand between 1 to 2.5 percent during the fourth quarter of 2014. At the same time, GameStop Corp. (NYSE:GME) increased its full year comparable store sales growth to 3 to 4 percent against the previous estimates of 2 to 5 percent.
GameStop has a net market cap of $3.66 billion and its shares trade at current P/E ratio of 10.28.
This article has been written by Prakash Pandey.