GameStop enjoys growth in 2008

Ben Parfitt
Leading US video games retailer GameStop has announced strong results for its 2008 fiscal year – and it predicts that it will see the same again in 2009.

Total sales for the year ending January 30th hit $8.8bn – a 24 per cent increase on the same period the year before. Like-for-like sales increased by 12.3 per cent. For the quarter ending January 30th 2008, total sales climbed 22 per cent compared to the year before, reaching $3.5bn. Like-for-likes were up 9.6 per cent.

As a result, the firm predicts that it will enjoy continued growth in the year ahead totalling between 10 and 12 per cent. Like-for-like sales are expected to increase by between four and six per cent.

GameStop also added that it intends to open another 400 stores “worldwide” in the next 12 months.

“The video game business continues to enjoy robust growth, making it the fastest growing of the many consumer goods categories,” GameStop CEO Dan DeMatteo stated. “2008 marked yet another year of strong new hardware sales, which will again help drive sales of new video games in the years ahead.

“Although our trade-in model is widely known as a driver of new software sales, our exceptional growth is also a function of thousands of conveniently located stores, excellent supply chain management, and the expertise of our associates who operate GameStop stores.

“We are energized by the fact that video gaming has gone mainstream, with recent industry data showing that nearly half of new gamers are over 35 years old and 40 per cent are female.”

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Tags: gamestop , forecast , results , financial , 2008

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