GameStop’s like-for-likes fall 7.9%

Ben Parfitt
GameStop’s like-for-likes fall 7.9%

Global games retailer GameStop has posted like-for-like sales decreases of 7.9 per cent for both the financial quarter ending January 30th and fiscal 2009, though it still ranks as the retailer’s second best year ever.

Sales of new software enjoyed a 1.2 per cent overall increase, and the chain pledged to continue its pre-owned focus in the year ahead.

Total sales for fiscal 2009 were up 3.1 per cent at $9.08bn. Like-for-like sales, however, fell by 7.9 per cent. Net earnings were also down 5.3 per cent at $377.3m.

Numbers for the company’s Q4 saw an overall sales increase of 0.9 per cent, hitting $3.52bn. Again, however, like-for-like store sales fell 7.9 per cent and net earnings fell be 7.1 per cent to $215.9bn.

For fiscal 2010 GameStop foresees an increase in new games sales of between two and five per cent and a considerable jump in pre-owned software and hardware sales of between five and ten per cent. New games hardware, however, is expected to dip by anything up to 15 per cent.

In 2010 GameStop expects to open 400 new stores and invest $125m in improvements across its chain. $100m has also been pencilled in for acquisition and investments – which could well cover a swoop for Blockbuster in the UK.

“GameStop delivered its second highest earnings year ever in fiscal 2009, in spite of the weak worldwide economic environment,” CEO Daniel DeMatteo outlined.

“We saw global market share growth as new software sales increased 1.2 per cent, proving once again that the great entertainment value and exceptional service GameStop delivers resonates with our customers. Each facet of our business has been evaluated in the past year and I am pleased that our team worldwide is working harder than ever to enhance our core competitive advantages and also build new, exciting growth drivers.

“GameStop remains committed to our long-range plans by prudently investing in new stores and strategic initiatives to strengthen our relationship with our customers. In 2010, we see great opportunity to deliver earnings growth by improving global operational efficiencies, expanding our leading market share and utilising the buy-sell-trade model to drive new and used software sales.”

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Tags: gamestop , financials , forecast , financial

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