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UPDATE 1-GameStop profit rises, but same store sales fall

Published 05/21/2009, 09:34 AM
Updated 05/21/2009, 09:40 AM

* Fiscal Q1 shr $0.42 up from $0.37 a year ago

* Rev up 9.2 pct to $1.98 bln

* Fiscal Q2 shr range $0.28 to $0.33

* Fiscal Q2 comparable sales to decline 8 pct to 11 pct

* Shares down 13 percent

NEW YORK, May 21 (Reuters) - Video game retailer GameStop Corp said on Thursday its first-quarter profit rose 13 percent, driven by sales of popular titles like "Resident Evil 5" and "Street Fighter IV, but same-store sales fell more than expected.

GameStop, whose shares fell 13 percent in early trading, said net income was $70.4 million, or 42 cents a share, up from $62.1 million, or 37 cents a share, a year earlier.

Sales rose 9.2 percent to $1.98 billion, the Grapevine, Texas-based company said.

But comparable store sales - sales at stores open at least a year - were lower than the company expected, declining 1.5 percent, due to the recession in Europe and a slowdown of new console sales that occurred late in the quarter.

The company expects to earn between 28 cents to 33 cents a share in the its fiscal second quarter. It also expects same store sales to decline by 8 percent to 11 percent.

But it reiterated its full year diluted earnings range of $2.83 to $2.93 with same store sales expected to range from flat to up 2 percent. (Reporting by Yinka Adegoke and Franklin Paul; Editing by Derek Caney)

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