Hardware drives GameStop sales

GameStop has reported a 9.5 per cent increase in profits to $2.28bn for the first quarter of 2011. Net earnings jumped 6.9 per cent to $80.4m.

Total store sales climbed 5.3 per cent with pre-owned product sales jumping 9.5 per cent. Digital sales soared by 53 per cent year-on-year.

HD consoles and the 3DS were singled out for merit. Its top five best selling games were Pokemon White/Black, Mortal Kombat, Marvel vs Capcom 3, Call of Duty: Black Ops and Homefront.

"We delivered record financial results while continuing to make investments in our digital channel, including the acquisitions of Spawn Labs and Impulse Inc," CFO Rob Lloyd stated.

"The strength of our balance sheet and consistent cash flow allows us to invest in future growth channels while returning value to shareholders."

CEO Paul Raines added: "GameStop continues to execute its strategic plan. Our strong comparable store sales reflect record share gains, pre-owned sales acceleration, robust digital sales growth and extraordinary consumer acceptance of our PowerUp Rewards loyalty program. Our unique, multichannel business model makes the GameStop network the premier gaming provider."

GameStop expects comparable Q2 sales to either be flat or fall by as much as two per cent. It expects full year earnings to increase by anything between 6.4 per cent and 10.2 per cent.