Electronics Boutique Comments On Expectations for Third Quarter Fiscal 2001
Earnings
Business Editors
WEST CHESTER, Pa.--(BUSINESS WIRE)--Oct. 31, 2000--Electronics
Boutique Holdings Corp. (Nasdaq: ELBO) said today that, based on
preliminary estimates, it expects earnings for its fiscal third
quarter to be lower than First Call estimates.
The Company expects earnings per share for the quarter, which
ended October 28, 2000, to be in the range of $0.06 to $0.08 per
share, compared to $0.19 per share for the year-ago quarter.
The Company said that lower-than-expected earnings for the third
quarter could be attributed to these factors:
-- Business slowed as consumer demand for other game platforms
declined in anticipation of the PlayStation(R)2 launch
-- The reduction in manufacturing of PlayStation 2 units and
resulting decrease in allocation of these units limited the
revenue and profit potential for Electronics Boutique in the
quarter
-- A significant drop-off occurred in PC game and Pokemon related
sales
-- A number of major new releases introduced during the quarter
failed to meet expectations
The Company now expects the above trends to continue into the
fourth quarter.
This past weekend, the Company had its most successful launch of a
gaming console system, PlayStation 2, and sold through virtually its
entire allocation. Tie ratios of software and accessories to hardware
exceeded the Company's expectations, which could lead to more
favorable future allocations. However, sales of the PlayStation 2
products due to their limited availability will not be sufficient to
make up the anticipated shortfall in the other categories. Therefore,
the Company is lowering its earnings expectations for the fiscal year
ending February 3, 2001. The Company now expects annual earnings to
range from $0.95 to $1.05 per share for the year.
On November 16, 2000 the Company will hold a conference call to
discuss actual third quarter results that will also be broadcast live
over the Internet at www.ebholdings.com.
Electronics Boutique is among the world's largest specialty
retailers of video and computer games and also sells video game
hardware, PC productivity software and accessories. The company
operated 694 stores in 46 states, Puerto Rico, Canada, Australia, New
Zealand and South Korea, primarily under the names Electronics
Boutique, EB GameWorld and Stop 'N Save Software. The Company has a
separate e-commerce division, EBWorld.com, Inc. The Company's website
can be found at ebworld.com .
This press release is based on preliminary financial results,
which are subject to further review and adjustment, and contains
"forward-looking statements." Electronics Boutique ("EB") is including
this statement for the express purpose of availing itself of the
protections of the safe harbor provided by the Private Securities
Litigation Reform Act of 1995 with respect to all such forward-looking
statements. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially.
These risks include, but are not limited to, EB's dependence on the
continued introduction of new and enhanced video games and PC hardware
and software; the cyclical nature of the video game market; the rapid
technological changes which occur in the video game and PC industry;
EB's ability to open and operate new stores on a profitable basis; the
intensely competitive nature of the electronic game industry and its
rapid changes in consumer preferences and frequent new product
introductions; the seasonal nature of the retail industry; EB's
dependence on its suppliers for products; risks inherent to conducting
international operations; and consumer spending patterns and
prevailing economic conditions. Please refer to Electronics Boutique's
Annual Report on Form 10-K on file with the SEC for a more detailed
discussion of these and other risks that could cause results to differ
materially.
--30--ss/ny*
CONTACT: Electronics Boutique, West Chester
John R. Panichello, (610) 430-8100
KEYWORD: PENNSYLVANIA |
