Investors bid up shares of Grapevine-based GameStop Corp. even after the video-game retailer forecast lower-than-expected second-quarter earnings.
The company said first-quarter net earnings increased 6.9 percent to $80.4 million, and diluted earnings per share increased 16.7 percent to 56 cents. Total sales increased 9.5 percent to $2.28 billion, and comparable store sales rose by 5.3 percent.
But for the second quarter, the company expects comparable store sales to decline slightly, ranging from negative 2 percent to flat. And the company said year-over-year earnings would decline as the company makes previously announced planned investments in strategic initiatives.
Shares, which slid as much as 5 percent in morning trading, rebounded after the company's conference call to finish positive for the day. GameStop shares closed up 64 cents at $27.32.
Executives discussed investments in digital technologies which are helping the company grow its business online.
The company reiterated its full year diluted earnings per share guidance of $2.82 to $2.92, representing up to 10.2 percent growth over fiscal 2010.