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Halftime: GameStop's CEO on Earnings


GAMESTOP'S CEO ON EARNINGS

GameStop’s shares fell lowerThursday morning after reporting its second-quarter guidance missed expectations due to weaker sales of consoles and games. But stocks rebounded after the company’s conference call.

So what does this mean for the largest video game retailer? CEO Paul Raines sat down with the Fast Money team for his first national broadcast interview since taking the helm last June.

Raines said the focus right now is the Grapevine, Texas-based company's transformation from a traditional retailer to a hybrid, multi-channel retailer. GameStop has made some significant strategic investments around digital content sales in stores, its online presence and acquisitions of digital companies.

“Our first quarter results were 53 percent growth in digital revenues,” Raines said, “and we’re well on track to $450 million this year and $1.5 billion by 2014 of digital revenues.”

But the company is not anticipating going all-digital in the near future. “Consumers exhibit really hybrid behavior. They’re not all physical and they’re not all going to digital overnight.”

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UBS BUMPS ITS PRICE TARGET ON ANN INC.

UBS increased its price target Thursday on Ann Inc., formerly Ann Taylor, from $37 from $34 just one day before earnings. It also reiterated a 'buy' on the retailer. Yet, the stock was down Thursday morning. Roxanne Meyer, an Executive Director in the Consumer Group at UBS explains what’s behind the position.




Trader disclosure: On May 19, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Steve Cortes owns (SO), (EXC), (KFT), (K), (GS), (MS) and (TGT). Steve Cortes is short Nikkei. Steve Cortes is Short EEM vs. S&P long. Steve Cortes is Short Aussie Dollar. Steve Cortes is Short British Pound. Guy Adami owns (AGU), (C), (GS), (MSFT), (NUE) and (BTU). Patty Edwards is long canadian dollar. Steve Grasso owns (AKS), (AMD), (ASTM), (BA), (BAC), (C), (D), (HOV), (JPM), (LIT), (LPX), (MHY), (NDAQ), (PFE) and (PRST).

Paul Bard
**no disclosures

Patty Edwards
Edwards owns (AAPL) for clients
Edwards owns (CLF) for clients
Edwards owns (GLD) for clients
Edwards owns (HD) for clients
Edwards owns (HD) for clients
Edwards owns (MSFT) for clients
Edwards owns (POT) For clients
Edwards owns (SBUX) for clients
Edwards owns (SLV) for clients
Edwards owns (TGT) for clients
Edwards owns S&P 500 for clients
Edwards owns Nasdaq 100 for clients

Steve Grasso
Stuart Frankel & Co and it’s partners own (ABX)
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MSFT)
Stuart Frankel & Co and it’s partners own (MU)
Stuart Frankel & Co and it’s partners own (NEM)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners are Short (QQQQ)
Stuart Frankel & Co and it’s partners are short (AAPL)

Roxanne Meyer
UBS has provided investment banking services to (EXPR), (LTD) within the past 12 months.
UBS has received compensation from (EXPR), (LTD) within the past 12 months.


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