GameStop Corp. today issued revised guidance for the third quarter, fourth quarter, and full year fiscal outlook. In the short term, the company is expecting comparable store sales to be down 12%, and earnings to be more sluggish due to the turbulence of its merger with Electronics Boutique Holdings and the effects of Hurricanes Katrina and Rita. However, the company is expecting comparable store sales to rise in the fourth quarter (8-10% increase over Q4 2004) and for the year overall (4-6% increase over 2004). Earnings per share for the full year are expected to range from $1.65 to $1.75.

"The merger with Electronics Boutique is coming together extremely well. In a very short period of time, we have made exceptional strides bringing the two companies together," remarked R. Richard Fontaine, GameStop's Chairman and Chief Executive Officer. "Our unifying theme, 'Better Together,' is being proven every day as we combine the operating strengths of each company. As both companies had a history of rapid expansion, together we are well prepared for growth and change. I am confident that GameStop is well on its way to fulfilling all the promises of the merger that we envisioned."

"The timing of our combination couldn't be better," continued Fontaine. "With Sony's PSP going into its first holiday gift season, Microsoft's Xbox 360 releasing in the U.S. on November, 22, 2005 and in Europe on December 2, 2005, GameStop is well positioned to end the year with real sales momentum. Adding to the opportunities as we move into 2006, are the expected releases of Sony's PlayStation 3 and Nintendo's Revolution. This is the absolute right time to combine the two companies and we are well on our way to realizing the benefits of the merger."