EB Reports Earnings

Electronics Boutique Holdings Corp. reported its financial results for its 1999 fourth quarter, which ended January 30, 1999. Those results showed record net income and revenues. Net income was US$16.5 million (81 cents per share) for the quarter, on revenues of $252.9 million.

For the same quarter in fiscal 1998, the company reported a pro forma net income of $11.4 million (72 cents per share) and revenues of $202.2 million. Comparable store sales were 14.6 percent higher for the fourth quarter this year than they were for the same quarter last year. The company had 528 stores in operation as of January 30, 1999, compared to 452 stores a year earlier.

"In addition to the growth in the number of stores and gains in comparable-store sales, we maintained tight control over increases in selling, general and administrative expenses," said Joseph J. Firestone, president and CEO of Electronics Boutique. The company's distribution system, which can ship new product to stores as often as six times a week, helped the company quickly respond to customer demand, and that help boost their income as well, Firestone said.

For the whole of the company's fiscal 1999, EB reported a pro forma net income of $20.1 million ($1.11 per share) on revenues of $571 million – both records for the company. For fiscal 1998, pro forma net income stood at $11.7 million (74 cents per share) on revenues of $454 million.

Comparable store sales were 14.1 percent higher for fiscal 1999 than they had been in fiscal 1998.