GameStop Profit Up 11.8%

19 Nov, 2009 By: Chris Tribbey

Video game retailer GameStop enjoyed a profit of $52.2 million for the three months ended Oct. 31, an 11.8% increase compared to the same quarter in 2008.

While comparable store sales were down 7.8% for the quarter, total sales were up 8.2% to $1.83 billion, with new software sales up nearly 10% and used game sales up more than 19%. The company attributed a drop in hardware sales to the comparable store sales drop.

“Store foot traffic increased from the prior quarter, driven by strong new title releases and price cuts on all current generation platforms,” said company CEO Dan DeMatteo. “We know consumers are looking for value in these difficult economic times. Our stores are prepared to deliver this holiday with the broadest selection of new and used games.”

For the fourth quarter GameStop is expecting earnings per share of $1.47 to $1.65, up from $1.39 in the fiscal fourth quarter of 2008.

In a conference call with investors Nov. 19, DeMatteo said his company was pleased with the sales of Sony’s new PlayStation 3 model (newly reduced to $299), and he expects Nintendo’s Wii to be a big hardware seller this holiday season.