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Gamestop sales jump 24 per cent

Record breaking fourth quarter results push yearly sales up to $8.8 billlion

Gamestop has announced its 2009 sales results and issued its earnings guidance for the next fiscal year ending January 30, 2010 - predicting continued growth of at least 10 per cent.

The last quarter saw sales hit USD 3.5 billion, 22 per cent over the same period the previous year. Meanwhile, full year sales increased by 24 per cent to top USD 8.8 billion, compared to USD 7.1 billion in 2007.

The US retailer expects sales to grow between 10-12 per cent, with earnings per share to grow between 18-22 per cent. The group also expects to see 400 new stores open worldwide, as part of its expansion into Europe - estimated to reap sales of USD 2 billion.

"The videogame business continues to enjoy robust growth, making it the fastest growing of the many consumer goods categories," said Dan DeMatteo, CEO.

"2008 marked yet another year of strong new hardware sales, which will again help drive sales of new videogames in the years ahead. This trend continued in January as NPD reported US new hardware unit sales grew 29 per cent, led by Nintendo's Wii, DS and Microsoft's Xbox 360."

He added: "Although our trade-in model is widely known as a driver of new software sales, our exceptional growth is also a function of thousands of conveniently located stores, excellent supply chain management, and the expertise of our associates who operate GameStop stores."

"Also of note is our US advertising penetration, and the power of our magazine, Game Informer, which is the twelfth largest consumer magazine in America, with over 3 million subscribers. We are energised by the fact that video gaming has gone mainstream, with recent industry data showing that nearly half of new gamers are over 35 years old and 40 per cent are female."

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