GameStop Forecasts Rosey Future19 Feb, 2009 By: Chris Tribbey
Video game retailer GameStop isn’t reporting its fourth-quarter earnings until March. However, the company sent its stock up 7% Feb. 19 when it reported that its quarterly sales were $3.5 billion, a 22% increase over the same period in 2007, with full-year sales of $8.8 billion, compared to $7.1 billion in 2007 (ended Dec. 31).
Per share earnings were estimated at $2.39 to $2.40 for the year, an increase of 33% over 2007, the company estimates, and for 2009 GameStop is estimating sales growth between 10% and 12%, and share earnings growth of 18% to 22%. The company plans to open an additional 400-plus stores worldwide this year.
“The video game business continues to enjoy robust growth, making it the fastest growing of the many consumer goods categories,” said GameStop CEO Dan DeMatteo. “2008 marked yet another year of strong new hardware sales, which will again help drive sales of new video games in the years ahead. This trend continued in January as The NPD Group reported U.S. new hardware unit sales grew 29%, led by Nintendo’s Wii, DS and Microsoft’s Xbox 360.”