GameStop Reports $52 Million Quarter

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Retailer GameStop announced its financial results for its third fiscal quarter ended November 3, 2007.
For the quarter, GameStop reported net earnings of $51.957 million, compared to net earnings in the same quarter the previous year of $13.569 million. GameStop's dramatically better results appear to be the combined result of rapid expansion alongside the excellent performance of games such as Halo 3, Madden NFL '08, Guitar Hero III, BioShock and Wii Play. Truthfully, GameStop's success has more to do with its used game business. During this quarter alone, GameStop opened 181 stores around the world.

It's important to recognize that GameStop's business is increasingly driven by used game sales rather than new game sales. While new game software constituted 39.5% of sales, new game hardware constituted 23.2% of sales and used products constituted 22.1% of sales, Used video game products constituted 48.5% of gross profits. New game software and hardware together only accounted for 28.1% of gross profits.

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This page contains a single entry by Editor published on November 20, 2007 6:19 AM.

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