Grapevine-based GameStop reports record 2007 sales and earnings

by PegNews wire

2007 sales and net earnings grew 33% and 82%, respectively.

GRAPEVINE — GameStop Corp., the world’s largest video game and entertainment software retailer, today reported sales and earnings for the fourth quarter and the fiscal year ended February 2, 2008. The company also issued guidance for fiscal 2008 and an outlook for the year to follow.

GameStop has become the world’s fastest growing retailer in the Fortune 500 by several metrics: sales of $7.1 billion for fiscal 2007, an increase of 33% over fiscal 2006; a 24.7% increase in comparable store sales; the opening of 586 new stores; and a 50% increase in operating earnings. Moreover, growth prospects remain favorable for continued rapid expansion in markets in various stages of development throughout the world.

GameStop sales increased 24.4% to $2,865.6 million in the fourth quarter, in comparison to $2,304.0 million in the prior year quarter. On a comparable store basis, sales increased 17.4% during the fourth quarter. New video game software sales grew 38.4%. The top five selling games during the quarter were Activision’s CALL OF DUTY 4: MODERN WARFARE, ROCK BAND from Electronic Arts, ASSASSIN’S CREED by Ubisoft, Nintendo’s SUPER MARIO GALAXY, and Activision’s GUITAR HERO III.

R. Richard Fontaine, Chairman and Chief Executive Officer, indicated, “Our performance in 2007 was impressive from many perspectives. But what is particularly noteworthy is that 2007 was a transformative year with hardware sales setting records and the installed base of users reaching an all-time high. Likewise, the expanding demographic profile of the video game player has moved this business into the mainstream of entertainment. This will be compounded by a strong 2008 video game title lineup and the value aspect of GameStop’s used model that appeals to a broad base of budget conscious consumers.

“Prospects for the 575-600 new store openings in 2008 look very promising even with the current concerns about the US economy. As one of the few American retailers actively seeking many new sites, GameStop is positioned to secure better locations with more advantageous lease terms and is more frequently being viewed as a critical brand to anchor strip centers,” concluded Fontaine.

Source: Gamestop