Record sales and earnings for GameStop

Retailer GameStop has reported another set of record numbers for its 2010 fiscal year.

Q4 2010 sales climbed 4.8 per cent to $3.69bn with like-for-like store sales increasing by 2.6 per cent. Net earnings jumped 10.1 per cent to $237.8m.

For the full fiscal year total sales climbed 4.3 per cent to reach a record $9.47bn with like-for-like store sales increasing 1.1 per cent. Net earnings hit a record $408m, an annual increase of 8.1 per cent.

Impressively, sales of digital console and PC software rocketed by 61 per cent year-on-year.

The chain adds that it intends to open 200 new US stores in 2011 that will "focus on underserved markets", though these gains will be countered by 200 store closures. These will centre around expiring leases and outlets that overlap the locations of newer stores.

"In 2010, our innovations in e-commerce, digital offerings and PowerUp Rewards helped drive record sales, earnings and market share," CEO Paul Raines stated.

"Our focus in 2011 is to build on the success of our PowerUp Rewards program, expand our used business and increase our digital revenues, all while delivering strong financial results."

CFO Rob Lloyd added: "In 2010, GameStop generated more than $590million of operating cash flow. We returned more than $380m to shareholders through stock repurchases, reduced debt by $200m as well as funded our new initiatives, digital acquisitions and global expansion.

"Overall, we begin 2011 in a position of financial strength and remain on track to meet our long-term return on invested capital goal."

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