GameStop 4th Quarter Profits Leap 46%
Ever since Electronics Boutique and GameSpot decided to join forces, everything has been coming up roses for the biggest video game retailer in the world.
Of course, it helps a great deal if there are great games to sell. According to the Wall Street Journal, GameStop's fiscal fourth-quarter net income rose 46%, due to "strong game sales and a booming market despite the sluggish economy." GameStop moved on to provide analysts with fiscal first-quarter and full-year expectations that are above and beyond previous predictions. For the last quarter ending February 2, the retailer showed a net income of $189.8 million (about $1.14/share), which is a pretty drastic increase over the $129.8 ($0.81/share) it posted a year ago. Overall revenue rose 24% to $2.87 billion as well, so things are going along pretty well.
In all honesty, it's not all that surprising to see the video game industry rising as the economy is going in the other direction. After all, when people don't have the money to go out, they stay home...and they have to entertain themselves when they're home, so what's better than a video game? Yeah, that's right, nothing.
3/18/2008 Ben Dutka