Yesterday, Gamestop reported for the first quarter in the fiscal year of 2008. Here are some of the highlights-**Sales were up 41.8% to 1,813,617 from 1,278,983 in 1Q 2007**Cost of sales went up 44% to 1,340,211 from 930,214 in 1Q 2007**Profit Margin up 1.5% to 3.4% from 1.9% in 1Q 2007**Gross Margin down 1.2% to 26.1% from 27.3% in 1Q 2007**Net Income up 151% to 62,125 from 24,723 in 1Q 2007**Cash up to 625,986 from 307,328 in 1Q 2007**Long term debt up to 79,857 from 70,951**Same store sales went up 27% this quarter**1Q EPS beats expected by $0.05**New video game software grew 72%The top 5 games for the past quarter have been Super Smash Bros Brawl, Mario Kart Wii, Rainbow Six: Vegas 2, and Army of Two. For the rest of the year there are several games coming out that should boost sales some. This includes Wii Fit, Metal Gear Solid 4, Gears of War 2, and Guitar Hero 4.During this quarter Gamestop opened 210 new stores and are working their way toward opening 600 stores this year. Half of the stores opened this quarter have been opened outside the US which will grow international sales by 25%. This obviously shows that Gamestop doesn't only have room to grow in the US. It shows that they have room to grow even more in other countries. This could bring major earnings from sales if they continue to do well and grow internationaly.For the upcoming second quarter, Gamestop is expecting same store sales to rise about 12%. They expect their diluted EPS to range from $0.26 to $0.28. And based off of better than expected returns this quarter, they raised their guidance for the year for the diluted EPS to range from $2.30 to $2.39, which represents a 28% to 33% growth over last year.Overall, this quarter looked good to me. Even though Gamestop's results topped analyst estimates, the stock fell because some people believe that there won't be enough major game releases this year that will do amazingly well. This is the number one fear for shareholders this year so far. Still, there is time for something to change and we will just have to play it by ear.Best,Awesomestockdude
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