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GameStop posts record results

By Phil Elliott

Thu 26 Mar 2009 4:05pm GMT / 12:05pm EDT / 9:05am PDT

Videogame sales help US retailer to eighth straight year of growth

US retailer GameStop has posted net earnings for its fourth financial quarter at USD 232.3 million, up 22.4 per cent on the previous year.

The performance was as a result of continued strong sales of videogames in that quarter totalling USD 3.5 billion, up 21.9 per cent on the previous year, while total sales for the year hit USD 8.8 billion, compared to the fiscal 2007 total of USD 7.1 billion.

"In spite of the current worldwide retail environment, GameStop's financial performance is being driven by delivering to consumers what they want: stores in a wide range of locations, knowledgeable associates and most importantly, options that provide value," said Daniel DeMatteo, the company's CEO.

"Our affinity with consumers, combined with our solid business model, prudent financial management practices, expansive brand presence and strategic merchandising, allowed us to achieve a record eighth straight year of sales and earnings growth.

"In 2008, we opened or acquired 1,002 stores worldwide, including the acquisition of Micromania, the largest video game retailer in France."

As well as a strong performance in what many investors will consider a bright spot in the retail landscape, DeMatteo expects the growth trend to continue, with the company predicting total sales to increase by 10-12 per cent throughout 2009.

"Looking at 2009, we are confident in our ability to increase sales and earnings, generate significant cash, advance market share, and maintain a financially sound balance sheet," he said. "We have positioned GameStop to offer videogame consumers worldwide the best values for gaming."

Diluted earnings per share for the full year stood at USD 2.38, with the company expecting that figure to grow by 18-22 per cent by this time next year.

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