Video game retailer GameStop continues to be one of the primary beneficiaries of the video game boom. For its third quarter ended November 3, the company saw its net earnings soar 283 percent to $52 million as total sales climbed 59.3 percent to $1.6 billion.

Comparable store sales also rose 46.3 percent for the third quarter, which easily beat the previous guidance of 30 to 32 percent. Sales of new video game software were up 59 percent in Q3 while new video game hardware sales increased 149 percent. GameStop's top sellers for the quarter included Halo 3, Madden NFL '08, Guitar Hero III, BioShock, and Wii Play.

"Our third quarter sales and earnings are a reflection of not only the real momentum in the video game business as a whole, but a particularly strong statement that GameStop's model continues to run ahead of the growth curve. We had an outstanding quarter both domestically and internationally, while our e-commerce division, GameStop.com, and video game publication, Game Informer, had record quarters," said R. Richard Fontaine, GameStop's Chairman and Chief Executive Officer. "We continue to do an excellent job of controlling our business in the face of rapid expansion in most of the 16 countries where GameStop does business. Our expenses and inventory controls have never been better planned and executed, and the scheduling of sales support for our more diverse customer base is more refined and productive than ever before."

He continued, "Our new store openings continue to generate excellent returns. During the quarter we opened 181 stores worldwide; surpassing the 5,000 store milestone, and believe that there are many more opportunities for additional store growth. Altogether, all signs point towards GameStop having a strong fourth quarter and robust 2007."

"We have already seen strong consumer demand for this fall's new video game software line-up. Madden NFL '08 and Halo 3 have sold millions of copies and are just two of the many exciting new titles that have launched this fall. As we prepare for the all important fourth quarter, our goal is to capitalize on the expanding landscape of consumers by delivering the most video gaming options," added Daniel DeMatteo, GameStop's Vice Chairman and Chief Operating Officer.

GameStop is now expecting fourth quarter comparable store sales to rise between seven and nine percent (on top of the 26.5 percent increase in the fourth quarter of fiscal 2006 when the Wii and PS3 debuted). Earnings per share are forecast to range from $0.95 to $0.97, up from earnings per share of $0.81 in the fourth quarter of 2006.

Finally, because of the company's great third quarter and its raised outlook for Q4, GameStop is also raising its guidance for the full fiscal year. Earnings per share are expected to range from $1.61 to $1.63, while total revenues are forecast to grow between 28 and 29 percent. Comparable store sales should increase 20 to 21 percent.