GameStop has reported record sales and earnings for the first quarter ended May 2, 2009.
First quarter net earnings rose 13.4 percent to $70.4 million (£44.9m), while sales increased 9.2 percent to $1.98 billion (£1.26b).
The company said that sales were led by the “very successful launch” of Nintendo’s DSi and the “strong releases” of Capcom’s Resident Evil 5 and Street Fighter IV, although it noted that the two games were unable to compete with “the tremendous success” of Grand Theft Auto IV and Super Smash Bros. Brawl early last year.
The company said that the recession in Europe and a slowdown of new console sales was to blame for a 1.5 percent decline in first quarter comparable store sales.
GameStop CEO Daniel DeMatteo also noted that sales of used games grew 31.9 percent during the quarter, “illustrating that value is becoming more important to our customers.” In contrast, new game sales fell by 2.8 percent.
“We continue to profitably manage our business through the global recession by effectively managing our buy-sell-trade model and maintaining tight expense control. In fact, we were able to retire $50 million of senior notes and end the quarter with cash of $230 million,” added DeMatteo.
“I am also pleased that we were able to capitalise on the downward pressure of rents, and open 114 new stores. As in the past, we continue to improve operating margins, build brand and value awareness with consumers, and gain market share as we expand the videogame market worldwide.”