GameStop Digital Sales Up 57%22 Mar, 2012 By: Chris Tribbey
Fourth-quarter earnings for video game retailer GameStop were down, the company reported March 22, though digital sales for all of 2011 were up 57% to $453 million, with the retailer adapting to consumers’ desire for digital content.
The company expects to grow digital sales in 2012 to $675 million.
Earnings for the fourth quarter (ended Jan. 28) were $174.7 million, down from $237.8 million during the same quarter in 2010. Sales were down 3% to $3.58 billion, from $3.69 billion. Earnings per share for the quarter were $1.27, down from $1.56 in the same quarter in 2010.
“In 2011, GameStop outperformed the video game market through disciplined execution of its core business and strategic initiatives,” said company CEO Paul Raines. “For 2012, we project operating earnings growth based on the continuation of our transformation, led by our strong pre-owned business, expanding digital offerings and emerging mobile categories.”
For all of 2011, global sales hit $9.55 billion. Full-year earnings were $339.9 million, down from $408 million in 2010.
During a conference call with investors, company executives noted that new hardware sales were down for the year, with all hardware sales down 6.3%, and that GameStop had reduced its American footprint by 1%. Same-store sales were down 2.1% for the year.