GameStop reports earnings growth

In the face of one of the most hostile times in the history of games retail, global games retailer GameStop has reported net earnings of $75.2m for its fiscal Q1 ending May 1st 2010 – a jump of 6.8 per cent year-on-year.

Total sales were up 5.1 per cent at $2.08bn – the first time that number has passed the $2bn mark in a non-holiday quarter”. However, like-for-like store sales were down 1.6 per cent for the period – a decline blamed on hardware price falls and supply constraints.

On the plus side, sales of new games rocketed by 13.3 per cent with star performers including Battlefield: Bad Company 2, God of War III, Final Fantasy XIII, Pokemon and BioShock 2.

By maintaining a sharp focus on our customer needs and overall business execution, our strong brick and mortar business continues to provide the capital needed to invest in new stores as well as execute our strategic plan to incorporate digital gaming into our global operations,” CEO Daniel DeMatteo stated.

The exec also went to great lengths to stress the chain’s growing aspirations – and early successes – in the digital sector.

The in-store Legends of Zork test proved highly successful in economically acquiring and converting our customers to browser game players,” he added.

Additionally, at the end of this month, GameStop will be marketing and selling downloadable content in a group of test stores. Of equal importance, our new customer loyalty program will launch in select markets. Altogether, we continue to deliver a superior shopping experience and are introducing our customers to the digital options for gaming.”

For Q2 the retailer forecasts anything from a two per cent year-on-year sales drop to a two per cent increase. Full year sales are predicted to range from flat to up two per cent.