GameStop today revealed that its sales for the third quarter of 2009 were $1.83 billion, an 8.2 percent increase from the $1.70 billion in sales the same period last year. Earnings during the period were $52.2 million ($0.31 per share), an over 10 percent increase as compared to the $46.7 million ($0.28 per share) earned in the same quarter of 2008.
“A sharp focus on efficient operations in this challenging global economy delivered solid earnings results and significant market share gains,” stated GameStop CEO Daniel DeMatteo. “Gross margins expanded, led by a sequential 150 basis point improvement in the used category. Store foot traffic increased from the prior quarter, driven by strong new title releases and price cuts on all current generation platforms.
New software sales increased 9.4 percent, though used games were a full 10 percent better with a 19.4 percent increase on top of the 19.3 percent increase from Q3 2008. Store sales actually decreased 7.8 percent, attributed to decreased hardware sales. The top five selling games for the period were Madden NFL 10, Halo 3: ODST, Batman: Arkham Asylum, NBA 2K10 and Wii Sports Resort.
“We know consumers are looking for value in these difficult economic times,” added DeMatteo. “Our stores are prepared to deliver this holiday with the broadest selection of new and used games, the most knowledgeable gaming associates and the buy-sell-trade model, which offers affordable choices that meet the needs of all types of gaming customers.”
For the final quarter of the year, GameStop is optimistic because of strong early results for titles like Call of Duty: Modern Warfare 2, New Super Mario Bros. and Assassin’s Creed 2. The corporation is expecting earnings per share for Q4 fiscal 2009 to be anywhere from $1.47 to $1.65, as compared to $1.39 in fiscal 2008.
“The holiday season has started strong. In the first 72 hours of its release, GameStop sold over 2.5 million copies worldwide of Call of Duty: Modern Warfare 2. We are optimistic that the huge success of this game will serve as a bellwether for what we can expect for the remainder of our holiday game sales,” concluded DeMatteo.
