GameStop Sales Up, Profits Down in Q320 Nov, 2008 By: Chris Tribbey
Third-quarter sales for video game retailer GameStop were up, but profits were down, the company reported Nov. 20. The announcement set GameStop stock down almost 15% by press time.
During the three-month period ending Nov. 1, GameStop reported sales of $1.69 billion, up from $1.61 billion during the same period in 2007. Profits were at $46.7 million, down from $52 million during the same period in 2007.
Video game sales increased by 10% during the quarter, the company reported, though hardware sales — Xbox 360, the PlayStation 3, Nintendo’s Wii and portable gaming devices — were down more than $45 million, compared to the same period in 2007.
GameStop CEO Dan DeMatteo put the quarter in context, considering the current economic environment, and said video game sales over the holidays should still deliver a nice profit for the company and its shareholders. He actually knocked on wood while discussing the future growth of the company during a conference call with investors.
“With the economic conditions like they are, almost a headwind with flying nails … we’re both cautious and appropriately aggressive,” added executive chairman Richard Fontaine during the call.
GameStop did note that while other retailers were closing stores these past few months, it opened 191 stores, 94 of those in the United States, and had acquired Micromania, France’s largest video game retailer.