GameStop's Q1 again bests records

Specialty retailer rides off-peak releases to 151 percent profit growth to $62.1 million on revenues up 41.8 percent to $1.8 billion.

The gaming industry may not be completely sold on year-round high-profile releases yet, but GameStop certainly seems to be enjoying the extra business. Following a banner 2007 year in which the gaming-focused retailer posted its largest gains yet--$288.3 million profit on $7.1 billion in revenue--GameStop said today that it has once again bested its previous year's performance for its first fiscal quarter ended May 3.

Unsurprisingly, GameStop's results have been buoyed in no small part by the unseasonal influx of high-profile releases. Revenues for the world's largest specialty retailer of games spiked 41.8 percent for the period, rising to $1.8 billion from $1.3 billion in 2007. More importantly for GameStop brass, the retailer's net earnings rocketed 151 percent to $62.1 million for the quarter.

Similarly unsurprising were the top titles for the three-month period, as reported by GameStop. With Take-Two reporting first-week sales of Grand Theft Auto IV hitting $500 million, GameStop said that Rockstar's latest scored top billing on its sales charts. No easy feat, considering that Rockstar's latest was only on store shelves for five days before the end of GameStop's reporting period. The remainder of the top five in descending order were Nintendo's Super Smash Bros. Brawl and Mario Kart Wii, Ubisoft's Tom Clancy's Rainbow Six Vegas 2, and Electronic Arts' Army of Two.

"We are very bullish on the future as three major metrics are transforming the business and accelerating the potential for GameStop growth," said GameStop chairman and CEO R. Richard Fontaine. "The installed base of video game consoles grew 34 percent in 2007, or nearly 31 million units, the highest incremental growth in the history of the business, and we are forecasting that hardware unit sell-thru will match these levels in 2008. And behind the huge hardware growth is the fact that the demographic for video gaming is expanding dramatically as industry figures indicate that 38 percent of game players are female."

Of equal importance to console adoption rates and an expanding audience are publishers' upcoming lineups, and the rest of the year is looking quite good in Fontaine's eyes. "We have an outstanding lineup of new games coming during the rest of the year, including Nintendo's Wii Fit, Konami's Metal Gear Solid 4, Microsoft's Gears of War 2, and Activision's Guitar Hero IV," he said. To further feed growth, GameStop said it had opened a record 210 stores in its first quarter and was on track to cut the ribbon on 550 to 600 new stores in 2008.

GameStop also said today that it was revising its guidance for its second quarter and full year. GameStop is narrowing its second-quarter guidance to 12 to 14 percent sales growth. Thanks to its strong first-quarter start, the retailer also said it would be raising its earnings per share guidance for the full year to $2.30 to $2.39, a 28 to 33 percent uptick.

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59 comments
kaptainownage
kaptainownage

Those hating on gamestop's trade-in value: Name one place besides e-bay that will give you a significantly higher sell value and I'll agree with you that gamestop's a rip off. Till then, Gamestop has been my reliable source for games for years. Sure they don't have sales, but the fact that I don't have to worry about a game being sold out because I reserved a copy is great.

mariokart64fan
mariokart64fan

it is a rip off to gamestop wanting to buy my perfectly new ps2, lol, for 25 dollars, one costed 150,00 at the time , and i payed double that lol , so go figure

zintarr
zintarr

Too funny. There are actually people that are Gamestop fanboys here.

senjutsu
senjutsu

I stopped going at ebgames(gamestop) since bestbuy started doing "super sales" on games. I mean, I bought GRAW2 at 15$ 3-4 months ago at bestbuy, and they were selling "The darkness" at 14$ and rainbow six vegas at 24$ (the highest price). They also made a supersale for GT- Prologue at 19$. While EBgames (gamestop) never cut the prices... And now that they sell the used games almost the same price, I'll surely never buy again from them. And no price warranty at ebgames... bestbuy has 30 days, where if the game drop in price, you go back there and they give you the refund.

Smoothy08
Smoothy08

GameStop never heard of it before in my life? Thats might be because i am British and live in the UK. The game shops in the uk are the likes of GAME and Gamestation. Is Gamspot an amercian brand?

cooldude03
cooldude03

With GTA IV's record setting sales, Gamestop better make money and alot of it otherwise someones pocketing some profit.

zxv33
zxv33

We need more PlayNTrade!! Play N Trade is awesome.

Hoski0999
Hoski0999

Amen to that Cabal! Gamestop is giving you a almost no questions asked for money back on a system that is OLD and USED. Two years after launch are going to have better or modified systems of that same system. For example, ps2's origianlly didnt come out with a ethernet adaptor attached to it, then they came out with the same look but with one attached to it, then they came out with a smaller one, so why would they want to pay you a crap load of money for a system they prob will never sell? I dare you to try to sell that on ebay, and you prob wont get much more out of it, and your not garunteed that money like gamestop does. Gamestop will give you money for the crap you dont want, n by the way i've had ppl there give me wrong discs or discless games, an all you have to do is go back and tell them n its all fixed. N used games are GUARANTEED meaning if they are faulty you just take them back and get your money back, NOT THAT HARD. Does gamespot need to tell the world about gamestop, no, but dont sit here and cry about what they dont do for you, how crappy they are, cuz your just making yourself look like an idiot. This is a gaming website if you havent checked yet, so they are gonna publicize stuff like this. Nobody says, "wonder how much Ubisoft paid to have this put up", but when a corparation is put up that doesnt give them what they wanted, they are up in arms about this kinda crap. I'm srry to rant and rave, but this American economy fails more and more becuase of customers like you, wanting everybit for NOTHING. You are not the only ones who need money, EVERYONE needs money, and if you cant deal with that then you dont need to be buying games. But wait, you want to buy games, so your stuck with the way things are, go cry to someone who cares!

Cabal23
Cabal23

Ok first off, if you were a GS manager getting paid 30k, you weren't a very good manager. I made well over 40k, with end of year bonuses. The ability make thousands of dollars extra for running a good store seemed absent from VW's remark And yes I was a bit more marketable due to a college degree and I ran The RM's store. Sucked to be you. Dn't like how they run their company, go start your own company and buy peoples junk back. See how much money you make. If they didn't make the profits they did they wouldn't have as many stores as they do, nor would stockholders continue to support the company. Their stock isn't that high, which says even with profits, they aren't making money hand over fist. It's always the people with the least knowledge of capitalism, free trade, Adam Smith, ect that complain that they only bought your ps2 back for $25. Why would they want a surplus of machines that are most likely faulty? If they wanted your stuff they would pay top dollar as they do sometimes with games.

Arkk_Angel
Arkk_Angel

I don't support GameStop. They don't give any incentive to purchase games from them. Toy's 'R' Us almost always has a deal when good games are released. Whoever is the cheapest gets my money.

VW_MKIII
VW_MKIII

And to think that they only pay their STORE MANAGERS 30K a year!! I know, because I was one for 3 years! EB Games was KING until the Game-stop merger! Monopolies drive prices up, competition forces prices down!

MarcjinJaume
MarcjinJaume

now they just need gamers to f**k like rabbits for the industry to have good future expectations good luk with that (they'll need it XD)

xcasterds
xcasterds

If you don't like GameStops trade in prices then trade in your games at Wal-mart or Best Buy, if you can hahahahahaha

mariokart64fan
mariokart64fan

gamestop is rip off, 25 dollars for my 399,99 ps2 i was about to sell 2 years after launch ,, in perfect condition box and plastic etc. so yA AND they sell me defective games almost 30 percent of the time, and get this there was one employee who didnt give me the discs . they gave me a empty box!!! lucky i noticed it before i got home which is 50 miles or more away from the store ,

iDIVIDEBYZER0
iDIVIDEBYZER0

What a surprise, another ass kissing article for Gamestop. So how much does Gamestop pay this site for all this publicity that nobody wants to hear?

Gifted_One
Gifted_One

From everything I have been reading it looks to be a very good 2008 and 2009 lineup across-the-board. Everything is looking promising for the near future. I just hope Publishers and Developers have can keep that up for years to come. Definately happy to see business is going well. When business is going good. More great games can be driving the market.

annegab
annegab

If GameStop's doing so well maybe they could increase their employees' salaries...ahem.

nanaki21
nanaki21

Yes the trade in value is crappy and if it makes some of you mad when I say that, and you know who you are, then to bad. It's a freaking service they offer, if they can't do it right then they shouldn't do it at all. They offered me a F***** dollar for a game I didn't want, and it was in good condition, but hey nobody cares right, then they turn around and sell the same game used for 10, what a freaking profit they make. The guy who worked there even laughed with me when he told me it was worth a dollar and said it wasn't right. Damn I sell that thing on Ebay for 12 bucks so the hell with trading in, they just want to screw you and make a profit for themselves which probably helps there increased revenue. I hate the whole American greed myself, but when you aren't rich, every dollar matters.

Pete5506
Pete5506

I never shop at Gamestop

FoxMcCloudDS
FoxMcCloudDS

Yes, I agree with Hoski0999 on that one. GameStop isn't forcing you to trade your games in. If you get Army of Two, and you think it is terrible, then you can keep it. It's simple. But maybe you just HATE it sooo much, and instead of leaving it on your shelf to rot away, you can bring it in and get some other game, or cash that you can use anywhere. GameStop is a great company, and it's rare to see a company do so well. I am happy to be a customer.

Hoski0999
Hoski0999

oo and by the way, ne one who thinks the trade in value sucks, you need to pull your head outta your butt. You should be so lucky they even give you ne thing at all, back in the day of NES, there were no trade in places that i know of, what you got is what you keep. least this way its games that you dont even play ne more, and you expect a higher refund? Typical American greed, and i'm living in America by the way. They think they should get something for nothing. It's used, its older, they are not going to give you as much, they need to make money too. I've seen some games go for a lot if they are recent or rare. I've seen games going for 45 dollars for a trade it, and thats being generous. If your not sure bout the game dont buy it expecting a bigger trade in, you bought it now live with it. As i said, you should be thankful you even get a trade it you blood sucking leeches.

Hoski0999
Hoski0999

this is to zeeshan and anyone else interested. The reason why gamestop makes such good money is that they are very smart and very good at helping out their customers save some money on their games. Gamespot makes money off of new games sure, and some consoles maybe. But the majority of their earnings comes from their used games, which is way the emphasize trade and play. They dont make as much off new games as they do for used games, so as for looking for sales, you can find a perfectly good, cheaper, GUARNTEED, used version of the game, and if you dont like it you just bring it back and they take it. The reason why Gamestop is so popular is yes ppl think of a gaming store when they think gamestop, but also they have crap loads of games in stock and because they do their business right with the customer in mind, they no how gaming works in peoples minds. So ne one who thinks their are "obvious" reasons like "its just cuz they are a gamestore" your right in a very small way, but that doesnt even touch on the basis of why this company is really successful. They do it right.

ObsidianArbiter
ObsidianArbiter

Only problem is that they're constantly lying about their games being in stock on their site -.-

artson1966
artson1966

Glad I own 500 shares of this stock. I will be laughing all the way to the bank. cha ching

anarchy69yoda
anarchy69yoda

Im not surprised this game reaches that high. i have big expectations

Festin_de_Sang
Festin_de_Sang

It's just too bad that they don't share any of their profits with their employees.

zeeshan810
zeeshan810

I agree.The staff at most of their stores is great.Their only problem is that they don't have good sales on games like those you occasionally find at like Walmart of Toysrus or Meijers or something.The thing is,when people want a game,they think "Game"stop and just go to Gamestop.My friends, at least, don't feel like looking around for sales and just go to the nearest Gamestop for a game. That is why they do so good.Another reason is simply because the game industry is doing so good and Gamestop is the largest game specialty chain.Look at that, they made 500 million bucks just in the first week of GTAIV,wow.Next Fall Gamestop is going to be on a rage.

Josepiphus
Josepiphus

I'm always amazed by people thinking they should get more for a used game. You think thats bad? You buy a new Mercedez you'll lose upwards of 10k in value just by driving it off the lot. The thing about gamestop is that it's a business. It has expenses. Depending upon the location those expenses can be somewhat absurd. Would you sell your used games for cheap if you had to pay 10k a month in rent. Not to mention health care, unemployment, employees, advertising. it adds up quick. I really like gamestop. The employees are generally retarded but if you do your own research and know what you want then fine. Some of you are looking at those numbers thinking why don't they charge less? Pay they're employees more? What you don't realize is that a huge portion of those "profits" will be put right back into expanding infrastructure and operations. 550 to 600 stores don't open themselves for free.

zeeshan810
zeeshan810

Gamestop is the best in selling games* BESTBUY, WALMART are not that great... :D

Pumper
Pumper

Cooperate vacuum evil - the EA of retail.

Jshaw71
Jshaw71

i guess when you buy up all your comitetion, you brag about all the money you've made... i think i am going to best buy from now on...

nanaki21
nanaki21

Gamestop overall is good, they give crappy trade in value though, and I don't know about the stores everywhere else but its hard to get used games in decent condition, they are always screwed up.

wiifan001
wiifan001

Hey GameStop why dontcha do me a favor and keep up the good work!

AcrobaticMonkey
AcrobaticMonkey

This is the best store ever. Its like a shopping mall to girls but the store for DUDES! i spend hours here trying to decide what game to get next after i trade my games in for all that store credit. Love this place

zgreenwell
zgreenwell

How much of those sales are still Guitar Hero and Rock Band?

okassar
okassar

I agree.The staff at most of their stores is great.Their only problem is that they don't have good sales on games like those you occasionally find at like Walmart of Toysrus or Meijers or something.The thing is,when people want a game,they think "Game"stop and just go to Gamestop.My friends, at least, don't feel like looking around for sales and just go to the nearest Gamestop for a game. That is why they do so good.Another reason is simply because the game industry is doing so good and Gamestop is the largest game specialty chain.Look at that, they made 500 million bucks just in the first week of GTAIV,wow.Next Fall Gamestop is going to be on a rage.

akiwak
akiwak

the Vampire that is GameStop "a game retailer here in the US" keeps growing because of the popularity of games. Their trade-ins price sucks! Sample: New Game $60 trade in value 19.88 (with membership *which is for suckers* $15 annual subscrition) add in %10 or 1.98 w/mem= $21.86 store credit. Then sell the game used for $55 or more.

EPaul
EPaul

Good for them now get staff knowledgeable about games

Knight_OfBlood
Knight_OfBlood

waZelda he said gamestop not gamespot, i still dont really know what hes talking about because theres no gamstops around here.

nate1222
nate1222

No surprise there. I haven't been in a GameStop nor EB Games in forever, though. My tastes are becoming more RETRO and NICHE. And GameStop/EB is carrying less and less of those varieties. They're good for more contemporary tastes and I applaud them for that. But I only go there once in a blue moon at this point. Keep up the good work GS/EB.

waZelda
waZelda

Little Yoshi, who do they rip off? I mean, Gamespot have been around for twelve years or something, which game page is older than that?

ErkiB
ErkiB

Thanks gamespot

trw534
trw534

gamestops awsome

dmish82
dmish82

@TurtlePerson2 "I own GME and am very upset that the stock price has dipped 5% today. Why does good earnings = bad stock price?" Could be that they forecasted a higher earnings than what they actually achieved.

DevilMario54
DevilMario54

I work at a record store where we buy and sell used CD, DVDs, and games, and I have to tell everyone the price they give you is based on what condition the discs are, and how well they will be able to sell it, for example, if you bring in a new title it will be easier for them to sell, so they might give you more, like I went in and traded in some games and I got like 35 bucks in credit for Lost Odyssey, on the other hand, you try to sell them a game that a lot of people bought, lets say like BioShock, or Forza 2(that one was free for a while when people bought 360s) they will only give you like 6 bucks for it because they have a ton of people trying to sell them back and less people trying to buy them at that point, so its harder to sell, and eventually as the game gets older and its sequels come out, they will have to drop the price and make even less money on a less undesirable title, simple,

hunter8man
hunter8man

As much as I hate their trade-in values, they always have the hard to find stuff and good deals on used DVDs. But they could still afford to pay their employees better.

TurtlePerson2
TurtlePerson2

I own GME and am very upset that the stock price has dipped 5% today. Why does good earnings = bad stock price?

icym
icym

Good to hear that the gaming market is doing well with all the bad news in the economy we keep hearing about. Congrats to Gamestop, love you for being there for the must-have-cannot-wait new release, but hate you for your trade-in values ;)