GameStop announced today its financial earnings results for the third quarter ended on October 29, 2011. Total sales came to $1.95 billion, up 2.5 percent from the same period last year. Net earnings were slightly down, totaling $53.9 million compared to $54.7 million during Q3 2010.
New gaming software sales grew 4.8 percent, with the top five selling games during the quarter being Gears of War 3, Battlefield, Madden NFL 12, Batman: Arkham City, and Dead Island. Pre-owned sales only increased 3.1 percent. Digital sales were a big win during the quarter, up 59 percent in total with console digital sales being up 63 percent and PC digital sales being up 51 percent.
“In the third quarter, GameStop outperformed the market and continued to execute against the long-term strategic plan through additional investments in digital and emerging businesses. We expect that our innovative digital, iDevice and gaming tablet businesses will supplement our leading retail business this holiday,” said GameStop CEO Paul Raines.
“As we begin the fourth quarter, the strong sell-through of November new title releases indicates a good start to the holiday season. We know that GameStop’s buy-sell-trade value proposition and PowerUp Rewards program with 14.5 million members place us on the short list of preferred shopping destinations.”
GameStop also recently authorized a new $500 million share and debt repruchase program, following the 1.92 million shares repurchased during the third quarter.
“GameStop’s commitment to improving return on invested capital and total shareholder return is underscored by today’s announcement of a new authorization of funds to be used for share buybacks and debt reduction,” said GameStop CFO Rob Lloyd.
