GameStop holiday sales nearly flat at $3.02B

Jan 09, 2012

(AP) -- Video game retailer GameStop Corp. on Monday reported nearly flat sales for the nine-week holiday period that ended on Dec. 31, as game software sales rose but sales of game consoles and other hardware slid.

The company backed its fourth-quarter and full-year earnings guidance.

Shares fell about 4 percent in early trading.

Total were $3.02 million, about the same as last year. Sales at stores that have been open at least a year declined 0.3 percent. This figure is a key gauge of a retailer's financial health because it excludes stores that open or close during the year.

Video game software sales grew nearly 10 percent to $1.47 billion, helped by Activision Blizzard Inc.'s "Call of Duty: Modern Warfare 3" and Bethesda's "Elder Scrolls V: Skyrim," among other games.

Sales of new game hardware fell nearly 20 percent. The and other are old, having launched in 2006 or earlier. There were also no big price cuts to stoke demand.

GameStop still expects to earn $1.66 to $1.76 per share in the fourth quarter, which is by far its busiest and most profitable quarter because of the holidays. Analysts polled by FactSet are expecting earnings of $1.73 per share.

For the full year, the company is forecasting earnings of $2.82 to $2.92 per share. Analysts are expecting $2.88 per share.

CEO Paul Raines said GameStop gained market share over the holidays, something it had not done until last year. That's because during the holidays, many shoppers buying video games as gifts tend to go to big-box retailers rather than a specialty store like GameStop, which is more popular with who shop year-round.

Raines added that GameStop's used games business continues to be "really healthy." The company lets people trade in used games for store credit - used video game products accounted for about 21 percent of its total . It recently also started selling tablets, iPhones and iPods, and letting customers trade in these devices too. Mobile devices accounted for 4 percent of the total trades customers made during the holidays.

Shares of Grapevine, Texas-based fell $1.08 to $23.79.

Explore further: Out-of-patience investors sell off Amazon

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Activision 3Q earnings soar, 2011 outlook raised

Nov 08, 2011

(AP) -- Activision Blizzard Inc. said Tuesday that its third-quarter net income nearly tripled thanks to strong demand for its video games. The company also raised its full-year outlook on the heels of Tuesday's launch of ...

NPD: October video game sales rise 1 percent

Nov 11, 2011

(AP) -- U.S. retail sales of video game hardware, software and accessories rose 1 percent to $1.08 billion in October, helped by sales of "Battlefield 3," market researcher NPD Group said Friday.

Best Buy expands game trade-in program to stores

Aug 26, 2010

(AP) -- Electronics retailer Best Buy Co. said Thursday it is offering store credit in exchange for used video games at nearly 600 of its stores, expanding an online trade-in program that has been in place for about a year.

NPD: US retail video game sales fell in September

Oct 14, 2011

(AP) -- U.S. retail sales of video game hardware, software and accessories dipped 4 percent to $1.13 billion in September, according to market researcher NPD Group. Sales of the games themselves grew somewhat, but this was ...

Electronic Arts lowers 2010 guidance as sales weak

Jan 11, 2010

(AP) -- Video game publisher Electronic Arts Inc. cut its full-year guidance on Monday, as ongoing weakness in its game disc sales didn't ease up over the holidays as the company had hoped.

Recommended for you

Out-of-patience investors sell off Amazon

15 hours ago

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

22 hours ago

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

Oct 24, 2014

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

Oct 24, 2014

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 0