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    GameStop Reports Record First Quarter 2011 Results
    Earnings Per Share Rise 17%
    Digital Sales Expand 53%

    GRAPEVINE, Texas, May 19, 2011 (BUSINESS WIRE) -- GameStop Corp. (NYSE: GME), the world's largest multichannel video game retailer, today reported record sales and earnings for the first quarter ended April 30, 2011.

    Financial Results

    Total sales for the first quarter of 2011 increased 9.5% to $2.28 billion, in comparison to $2.08 billion in the prior year quarter. Total company comparable store sales were 5.3%, driven primarily by strong HD console sales, the Nintendo 3DS launch and a 9.5% growth of pre-owned products. Digital sales increased 53% over last year as each digital segment experienced strong growth.

    The top five selling games during the quarter were Nintendo's Pokémon Black and White,Mortal Kombat from Warner Home Video Games, Capcom's Marvel vs. Capcom 3: Fate of Two Worlds, Call of Duty: Black Ops from Activisionand THQ's Homefront.

    Net earnings increased 6.9% to $80.4 million, as compared to net earnings of $75.2 million in the prior year quarter. Diluted earnings per share increased 16.7% to $0.56, as compared to $0.48 in the prior year quarter.

    Paul Raines, chief executive officer, stated, "GameStop continues to execute its strategic plan. Our strong comparable store sales reflect record share gains, pre-owned sales acceleration, robust digital sales growth and extraordinary consumer acceptance of our PowerUp Rewards(TM) loyalty program. Our unique, multichannel business model makes the GameStop network the premier gaming provider."

    Rob Lloyd, chief financial officer, said, "We delivered record financial results while continuing to make investments in our digital channel, including the acquisitions of Spawn Labs and Impulse, Inc. The strength of our balance sheet and consistent cash flow allows us to invest in future growth channels while returning value to shareholders."

    Earnings Guidance

    For the second quarter of fiscal 2011, the company expects comparable store sales to range from -2.0% to flat. Diluted earnings per share are expected to range from $0.20 to $0.23. As expected, the decline in year-over-year earnings stems primarily from the previously announced planned investments GameStop is making in its strategic initiatives, which will be approximately $0.04 per share in the second quarter.

    GameStop is reiterating its full year diluted earnings per share guidance range of $2.82 to $2.92, representing a 6.4% to 10.2% increase over fiscal 2010. Full year comparable store sales are still expected to range from 3.5% to 5.5%.

    Share Repurchase Update

    During the first quarter, GameStop purchased 5.92 million shares at an average price of $19.88, or $117.7 million worth of stock.

    Note that earnings guidance only includes the effect of the shares purchased thus far in fiscal 2011 from the $500 million share and debt repurchase plan authorized in February 2011.

    Conference Call and Webcast Information

    A conference call with GameStop Corp.'s management is scheduled for May 19, 2011 at 10:00 a.m. CT to discuss the first quarter sales and earnings results. The conference call will be simulcast on the Internet at investor.gamestop.com. The conference call will be archived on the website until July 19, 2011.

    GameStop is scheduled to present at Citi's 2011 Global Consumer Conference at 10:00 a.m. ET on Tuesday, May 24 at the Westin Times Square Hotel in New York City.

    About GameStop

    GameStop Corp. (NYSE: GME), a Fortune 500 and S&P 500 company headquartered in Grapevine, Texas, is the world's largest multichannel video game retailer. GameStop's retail network and family of brands include 6,573 company-operated stores in 17 countries worldwide and online at www.GameStop.com. Our network also includes: www.Kongregate.com, a leading browser-based game site; Game Informer(R) magazine, the leading multi-platform video game publication; Spawn Labs, a streaming technology company; and Impulse, Inc., a digital distribution platform available at www.impulsedriven.com.

    General information on GameStop Corp. can be obtained at the company's corporate website. Follow GameStop on Twitter @ www.twitter.com/GameStop and find GameStop on Facebook @ www.facebook.com/GameStop.

    Safe Harbor

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, the outlook for fiscal 2011, future financial and operating results, projected store openings, the company's plans, objectives, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of GameStop's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. GameStop undertakes no obligation to publicly update or revise any forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the inability to obtain sufficient quantities of product to meet consumer demand, including console hardware and accessories; the timing of release of video game titles for current generation consoles; the risks associated with expanded international operations and the integration of acquisitions; the impact of increased competition and changing technology in the video game industry, including browser and mobile games and alternative methods of distribution; and economic, regulatory and other events, including litigation, that could reduce or impact consumer demand or affect the company's business. Additional factors that could cause GameStop's results to differ materially from those described in the forward-looking statements can be found in GameStop's Annual Report on Form 10-K for the fiscal year ended January 29, 2011 filed with the SEC and available at the SEC's Internet site at www.sec.gov or investor.gamestop.com.

    GameStop Corp.
    Statements of Operations
    (in millions, except per share data)
    13 weeks 13 weeks
    ended ended
    April 30, 2011 May 1, 2010
    Sales $ 2,281.4 $ 2,082.7
    Cost of sales 1,661.2 1,511.9
    Gross profit 620.2 570.8
    Selling, general and administrative
    expenses 442.7 403.8
    Depreciation and amortization 46.4 42.5
    Operating earnings 131.1 124.5
    Interest expense, net 6.1 9.6
    Earnings before income
    tax expense 125.0 114.9
    Income tax expense 45.0 40.1
    Consolidated net income 80.0 74.8
    Net loss attributable to noncontrolling interests 0.4 0.4
    Consolidated net income attributable to GameStop $ 80.4 $ 75.2
    Net income per common share:
    Basic1 $ 0.56 $ 0.49
    Diluted1 $ 0.56 $ 0.48
    Weighted average common shares
    outstanding:
    Basic 142.7 153.6
    Diluted 143.7 156.5

    Percentage of Sales:

    Sales 100.0 % 100.0 %
    Cost of sales 72.8 % 72.6 %
    Gross profit 27.2 % 27.4 %
    Selling, general and administrative
    expenses 19.4 % 19.4 %
    Depreciation and amortization 2.0 % 2.0 %
    Operating earnings 5.8 % 6.0 %
    Interest expense, net 0.3 % 0.5 %
    Earnings before income
    tax expense 5.5 % 5.5 %
    Income tax expense 2.0 % 1.9 %
    Consolidated net income 3.5 % 3.6 %
    Net loss attributable to noncontrolling interests 0.0 % 0.0 %
    Consolidated net income attributable to GameStop 3.5 % 3.6 %

    1 Basic net income per share and diluted net income per share are calculated based on consolidated net income attributable to GameStop.

    GameStop Corp.
    Balance Sheets
    (in millions, except per share data)
    April 30, May 1,
    2011 2010
    ASSETS:
    Current assets:
    Cash and cash equivalents $ 395.8 $ 431.9
    Receivables, net 50.6 36.0
    Merchandise inventories 1,306.1 1,152.1
    Prepaid expenses and other current assets 106.2 99.8
    Deferred taxes 24.1 16.6
    Total current assets 1,882.8 1,736.4
    Property and equipment:
    Land 25.7 11.7
    Buildings & leasehold improvements 590.8 530.2
    Fixtures and equipment 840.7 731.1
    1,457.2 1,273.0
    Less accumulated depreciation and amortization 837.8 697.7
    Net property and equipment 619.4 575.3
    Goodwill, net 2,081.2 1,941.3
    Other noncurrent assets 344.0 282.4
    Total assets $ 4,927.4 $ 4,535.4
    LIABILITIES AND STOCKHOLDERS' EQUITY:
    Current liabilities:
    Accounts payable $ 872.2 $ 767.5
    Accrued liabilities 629.1 517.9
    Total current liabilities 1,501.3 1,285.4
    Other long-term liabilities 177.2 122.5
    Senior notes payable, net of discount 249.2 447.6
    Total liabilities 1,927.7 1,855.5
    Stockholders' equity:
    Preferred stock - authorized 5.0 shares; no shares
    issued or outstanding 0.0 0.0
    Class A common stock - $.001 par value; authorized 300.0 shares;
    141.3 and 152.9 shares outstanding, respectively 0.1 0.2
    Additional paid-in-capital 823.1 1,091.9
    Accumulated other comprehensive income 292.3 115.4
    Retained earnings 1,886.2 1,472.9
    Equity attributable to GameStop Corp. stockholders 3,001.7 2,680.4
    Equity (deficit) attributable to noncontrolling interest (2.0 ) (0.5 )
    Total equity 2,999.7 2,679.9
    Total liabilities and stockholders' equity $ 4,927.4 $ 4,535.4
    Schedule I
    GameStop Corp.
    Sales Mix
    13 Weeks Ended 13 Weeks Ended
    April 30, 2011 May 1, 2010
    Percent Percent
    Sales of Total Sales of Total
    Sales (in millions):
    New video game hardware $ 432.4 19.0 % $ 348.3 16.7 %
    New video game software 914.7 40.1 % 873.1 41.9 %
    Used video game products 625.0 27.4 % 570.8 27.4 %
    Other 309.3 13.5 % 290.5 14.0 %
    Total $ 2,281.4 100.0 % $ 2,082.7 100.0 %
    Schedule II
    GameStop Corp.
    Gross Profit Mix
    13 Weeks Ended 13 Weeks Ended
    April 30, 2011 May 1, 2010
    Gross Gross
    Gross Profit Gross Profit
    Profit Percent Profit Percent
    Gross Profit (in millions):
    New video game hardware $ 30.1 7.0 % $ 21.2 6.1 %
    New video game software 174.9 19.1 % 174.5 20.0 %
    Used video game products 300.0 48.0 % 274.4 48.1 %
    Other 115.2 37.2 % 100.7 34.7 %
    Total $ 620.2 27.2 % $ 570.8 27.4 %

    SOURCE: GameStop Corp.

    Media Contact:
    Chris Olivera
    Vice President,
    Corporate Communications
    GameStop Corp.
    (817) 424-2130
    or
    Investor Contact:
    Matt Hodges
    Divisional Vice President,
    Investor Relations
    GameStop Corp.
    (817) 424-2130