EB boasts strong fourth quarter

Electronics Boutique Holding Corporation, the parent company of EB Games and EB Games Online, announced earnings for the fourth quarter that ended January 31, 2004. The period showed strong sales growth in new and used video games and an increase in market share for the company.

While individual store revenues were flat compared with the fourth quarter a year prior, EB was able to see total revenue increase more than 21 percent for the full fiscal year. The increase was due in large part to the opening of 383 new Electronic Boutique stores, thus bringing the total number of its stores to 1,528.

In the earnings call, President Jeffrey W. Griffiths said that most of the new store growth occurred in local strip malls and that strip malls will continue to be targeted for growth in the future.

The company showed strong growth in the areas of console game sales (up 31 percent compared to the prior fourth quarter) and hardware sales (up 22 percent compared to the same quarter last year). "We expect these growth trends to continue, fueled by an anticipated hardware price drop in fiscal 2005, as well as an exciting lineup of new software titles," said Griffiths. However, the company is predicting earnings in the current quarter that will fall below expectations.