GRAPEVINE, Texas — GameStop is postive about 2012, despite ending 2011 with a quarter of declining sales and earnings.
Paul Raines, chief executive officer, stated, “In 2011, GameStop outperformed the video game market through disciplined execution of its core business and strategic initiatives. For 2012, we project operating earnings growth based on the continuation of our transformation, led by our strong pre-owned business, expanding digital offerings and emerging mobile categories.”
GameStop's total global sales for the fourth quarter of 2011 were $3.58 billion compared to $3.69 billion in the prior year quarter, a decrease of 3%. Consolidated comparable-store sales decreased 3.6% compared to the prior year quarter.
For the fourth quarter, GameStop’s net earnings were $174.7 million compared with net earnings of $237.8 million in the prior year quarter. Diluted earnings per share were $1.27 compared to diluted earnings per share of $1.56 in the prior year quarter.
For fiscal year 2011, total global sales were $9.55 billion, a modest increase over fiscal 2010. Full year consolidated comparable-store sales declined 2.1% compared to fiscal 2010. By product category, sales in new hardware and other declined, while the company posted increases in both new and pre-owned software sales.
For fiscal year 2011, GameStop’s net earnings were $339.9 million compared to net earnings of $408 million in fiscal 2010. Diluted earnings per share were $2.41 compared with diluted earnings per share of $2.65 in fiscal 2010.
GameStop projects that sales growth in 2012 will be primarily driven by an increase in digital sales, pre-owned video game products and mobile business initiatives. Earnings per share are expected to increase 8% to 15% from the same period last year.