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Retail

GameStop Christmas sales flat on previous year

Thu 07 Jan 2010 1:54pm GMT / 8:54am EST / 5:54am PST
Retail

$2.86 billion made over 9 week holiday period; hardware sales down 8%

GameStop has reported sales of USD 2.86 billion for the nine week holiday period ending January 2, 2010, a figure that almost equals the previous year's sales of USD 2.85 billion.

New videogame software sales increased by four per cent over the holiday period, said the company, while hardware sales declined by eight per cent - a trend influenced by recent price cuts and a decline in units sales on a year-on-year basis.

The top five best selling games over the nine weeks were Call of Duty: Modern Warfare 2, Assassin's Creed 2, New Super Mario Bros Wii, Left 4 Dead 2 and Dragon Age: Origins.

"Despite a kick start to this year's holiday selling season with several major title launches, sales momentum was impacted in December by economic weakness in all global operating segments, winter storms at peak shopping periods in December, and unexpected shortages of key products such as New Super Mario Bros. Wii, Nintendo Wii and Sony's PlayStation 3 consoles," said the company's CEO Daniel DeMatteo.

Used products continued to be a draw for consumers and outperformed sales trends in general, however the 10 per cent rise in sales experienced was still below that forecast by the company.

Fourth quarter 2009 guidance was subsequently lowered to USD 1.25 - 1.29 earnings per share, although chief financial officer Cathy Smith stated the fiscal 2009 year would still be the company's second highest earning in history after fiscal 2008.

Strong PlayStation 3 demand, an exciting software line-up and an anticipated economic recovery would all be positively influencing factors for the company in fiscal 2010, it predicted.

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