Record sales for GameStop

Michael French
Record sales for GameStop

Who said there was a slump in the software market?

GameStop has just published its three-month trading report, showing that sales were up nine per cent year on year.

Record sales were at $1.9bn for the three months ending October 30th - that's a jump on the same period last year, where the firm made $1.83bn.

With earnings per share of $0.38, that number also means GameStop has beaten the estimates on Wall Street.

In total, net earnings for the third quarter increased 4.8% to $54.7 million.

J. Paul Raines, Chief Executive Officer, commented: “Our global retail team increased revenues, expanded gross margins and maintained tight expense control which led to solid earnings growth.

"Based on brisk sales trends of new software titles and motion controller launches, we are enthusiastic about our business and have raised our full year earnings guidance.”

GameStop has gone to great lengths of late to protect its business from any potential erosion in the software market, including the introduction of new digital initiatives and customer loyalty programs.

Dan DeMatteo, Executive Chairman, added: “Several technology and consumer initiatives have entered the market, each of them strengthening our core business and establishing GameStop as the retail leader in providing consumers with exciting ways to experience video gaming.

"The PowerUp Reward Loyalty Program, Kongregate.com, in-store digital content sales and a re-tooled gamestop.com were all implemented to expand market share and increase our share of wallet. Lastly, the on-going execution of share buybacks and debt retirement reinforces our commitment to exercise disciplined capital allocation practices to maximize shareholder returns.”

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Tags: Retail , gamestop , software market

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