GAME to exceed 2007 profits forecast

GAME has said that it will exceed its full-year underlying profit forecast for financial year 2007 – 2008.

According to Dow Jones Newswires, GAME expects pre-tax profit to be no less than 74 million for the year ended January 31st, 2008.

That represents a significant jump from the 29.5 million reported a year earlier, and is slightly ahead of the 73 million previously predicted.

GAME added that it had traded well since the start of the new fiscal year and has continued to experience "strong consumer demand for the unprecedented range of products in the market".

"The existence of five successful hardware formats and the evident broadening consumer appeal will also stimulate further growth," said the retailer in a statement.

When it comes to the current financial year, the GAME board now believes that life-for-like sales growth of between five per and ten per cent for the fiscal year to January 31st, 2009 is "achievable". That is in contrast to last month, when the firm said that it expected ‘relatively limited’ growth in fiscal 2009.

GAME added that it expects gross margin to improve by between 50 and 100 basis points in the year, as the proportion of software in the sales mix increases and it extracts benefits from its acquisition of Gamestation.

"The board believes that the market for PC and video games products remains buoyant," it commented.

GAME will report its fiscal 2008 results on April 29th. The firm’s stock has risen 33 per cent over the past year, thanks to strong sales and profit growth.