Electronics Boutique’s web site sales grow 77% to $25 million

Sales at Electronics Boutique Holdings Corp.’s web retailing site ebgames.com increased 77% to $25 million from the previous year. For the 53-week fiscal year ended Feb. 3, 2001, the company reported revenues of $770.8 million up 5.5% from $730.4 million the year before. Net income for the same period was $14.9 million, compared with $22.8 million the year earlier. The company had 737 stores as of Feb. 3, compared with 619 in the year earlier. Comparable store sales on a 52-week basis ended January 27, 2001 decreased 4.5%. Electronic Boutique sells only video game hardware and software, PC entertainment, PC productivity and educational software and accessories. The company noted that it has reclassified shipping and handling fee income as net sales as opposed to cost of goods sold. In the current and prior fiscal year, $2.2 million and $1.7 million respectively, was reclassified as net sales.

"This year was a challenging year for the industry as it experienced a decrease of 5% in overall video game sales as reported by The NPD Group. Our results for fiscal 2001 were impacted by Sony`s production delays of its PlayStation 2, resulting in a shortfall of available product and a corresponding slow ramp up of related software sales. While demand for the PlayStation 2 console system was at unprecedented levels for the holidays, a large part of Electronics Boutique`s allocation arrived late in the season -- thereby delaying software and accessory sales to hardware," said Joseph J. Firestone, president and chief executive officer.

The company noted that it opened a new 200,000 square foot distribution facility in Louisville, KY and installed a new supply-chain software system to manage inventory, as well as a new system for warehouse management.