GameStop enjoys $9.08 billion in sales in FY2009, $377 million profit

by Alexander Sliwinski on Mar 18th 2010 2:30PM

GameStop made bank even in the bad economy. Reporting its fourth quarter and fiscal 2009 (ending January 20, 2010) results today, the retail juggernaut revealed it had $3.52 billion and $9.08 billion in sales during the quarter and full year, respectively. As for profits -- after taxes, depreciation, amortization, et al. -- the company earned $215.9 million for the quarter and $377.3 million for the year.

CEO Daniel DeMatteo noted it was the company's second highest earnings year, "in spite of the weak worldwide economic environment" -- no kidding. New software sales accounted for 41.1 percent ($3.7 billion) of the company's total sales, while the sweet recycled nectar of used games came in second with 26.4 percent ($2.4 billion) -- the rest was new hardware and "other." GameStop expects its earnings to grow 14 to 18 percent in the coming year.

Source

Tags: business, fiscal-year, fy2009, gamestop, q4

Reader Comments (52)

IMpressive

True.. now if only Gamestop suits acknowledged that and stopped screwing over their customers and more importantly their employees. Gamestop's stock is in a shitter and that's all they seem to care about at the expense of customers and employees.

Nowhere to go but down!

Death to Gamestop!!!!! Also can I borrow 20 bucks.

I don't understand the GameStop hate. I know they give you little money when you sell games, but other than that it isn't bad at all for me. The employees at my local GameStop are really nice and helpful and it's much easier to get a game from there than anywhere else (except Amazon).

Helpful gamestop employees? That's funny Michael Jackson.

What, you mean besides "Would you like to preorder x, x, x, x, x, yada yada" or, "Would you like an Edge Card?" "Would you like a warranty?" or just ignoring you?

One time I went up to Gamestop to pickup a couple PS2 games. I literally walked out of there with a pre-order for KZ2, SFIV, and a subscription to Gameinformer. Of course I didn't fully pre-order them. I just put $5 down to get them to shut up.

Then another time I had DMC4 on pre-order, I went to pick it up and I was supposed to get my art book with it. Here is the exact words he said "We're out of Devil May Cry artbooks... But I have an extra Assassin's Creed artbook of you want it"

@Traceur
So what did you do? Did you settle for the AC artbook or what?

Jesus man, there are some things that you dont talk about in public.

@ MJ - I couldn't care less about the competence of their employees, or them not giving me a fair share for my trade ins (I don't trade in), I don't like them because they open games and sell them as new. That's MY beef, and that's why I haven't purchased from them since 2006, 2004 before that - Final Fantasy III and Contact were reason enough to brave their post Christmas BOGO1/2 DS game sale.

I guess i've just been lucky, but i've never had a problem with them.

Granted, i've only dealt with a handful of branches, one of which is staffed by a lot of friends from high school

@Dr. Blight:

I've talked to people who work at GameStop. The reason it's like that is because they get fired if they don't sell X amount of pre orders and subscriptions.

Yeah,used software came second in total sales, but I bet 90% of its net income came directly from used software.

I would bet you are close to correct sir. Good call.

300 million in profit? Meh...James Cameron made 2 billion in profit with one product. Looks like GameStop needs to figure out how to cut costs somewhere so they can see a better profit margin. They basically saw 3% profit.

Yay?

More like 4%. This isn't surprising, actually, most businesses run a very small profit margin.

4%. Well in that case I retract my previous statement. ;)

4% seems pretty low but then again I'm a software engineer and not a financial expert. You could be right...it just seems like a lot of overhead though.

wow.....I would have thought their profits would be higher than that with them buyin game for $25 and selling it for $54....is there overhead REALLY that much? I mean I suppose them having like 10 stores in little ole Greensboro, NC is overkill...

You have to factor in the costs to run the store, employees etc.

yea I know....there overhead is too high because they have too many damn stores...

Keep in mind all of those executives who need six and seven figure incomes to scrape by on.

Meanwhile their employees enjoy 0 dollars in sales and $377 a week!

I don't know why but I read that like it was "Justice League". lol

You know what would change that? Getting the price of new games down to something reasonable. And don't give me that cost of development bull crap. A lot of movies cost a hell of a lot more to make and even after the cost of admission to the theater and later buying the dvd I'm still only out about thirty bucks.

That was meant to go below. Oops.

Gotta love this. Game companies are making layoff's everywhere YET Gamestop is profiting $377 million? This has to change.

It's called used games.

ugh, hate that place. Though I fear I'll have to pay a visit tomorrow in order to find a copy of Fragile to play this weekend. Has anyone spotted that game in a Target or Best Buy this week?

It's called Amazon, and overnight shipping.

This thing called shipping is why I'm looking in stores. You can call me a cheapskate, but I don't want to pay that fee if I don't have to.

So you'd rather use gas and pay tax than pay a little shipping and probably get a discount on the product? Smooth.

It's on the way home from work. Same road and everything. The gas is already used.

That's like buying a $60 game and selling it back for $62.50.

If i did the math right. Also I rounded.

Used to do all my game shopping at GameStop but I haven't bought anything there in the last 2 years. Internet FTW!

Don't believe the Internet. They're obviously still buying their games there as those numbers don't happen by accident.

I dunno, maybe someone gave Gamestop a $9B dollar bill instead of a $20 by accident.

while I am not a fan of EB, and the stories of Gestapo regional mangers and the firings for not meeting numbers is pretty sad.....

I did just give them $50 for CoD:MW:Reflux Edition last week. Happily I might add, very happily I did.

Suck it Kotick!

side note - I was in EB a few weeks back and heard the manager saying to another employee that no, she hadn't called so and so yet and she didn't want to because the numbers.

I do frequent EB looking for good used games on the cheap as all of the mom and pop stores have been shut down. I usually, okay all the time, come up empty handed. But it's the thrill of the hunt!!

Unfortunately this proves that the service will only get worse. The Gamestop experience is completely different depending on which one you go to, which means their training is at best inconsistent and at worst non-existent. I don't mean in regards to personality, which is going to be different, but in terms of overall knowledge. As a GS employee it is your job to stay completely on top of the industry. If I'm having to inform you that a game has been delayed, or your company has a particular pre-order bonus, that's bushleague. In this day and age there is no reason why your employees should be uninformed as to the products in your store. The internet is just a click away.

Congrats... I love me GSs, I haven't bought a game for full price (usually have to chip in $5-15) in a loooong time, let the good times roll (over in credit with the deals they offer). Recently; B2 bought for $50, sold for $45, ME2, bought for $50, sold for $42...

Gamestop will continue to dominate as the price of downloadable continues to be the same as a physical copy.

Dragon Age Origins: Awakening Physical Copy: $45.00
Dragon Age Origins: Awakening Downloaded: $45.00

One I can resell, one I can't. I would prefer to download it, but the price should be $30.00 in that case to make up for the fact I can't resell the bloody thing.

EA's project $10 could be better put to use just taking off $10 off the sticker price and allowing people to download the game on day 1.

Amen.

These big companies that post all these multi billion dollar profits need to take at least half of those profits and split them between all there 8 dollar an hour employees that make the company. These huge companies feeding all the money to only a few upper management people and shareholders are killing America!!!

Right. Because all stockholders are rich people, huh?

Do some research next time, genius.

Compared to a 19 year old making $8 an hour they are filthy rich, you mentally lagging douch3bag.

I did not contribute. Stopped giving my games away when I realized I was giving them away. Freedom is not free people (it cost shipping).

ScamStop what?

I must admit I contributed to that 41.1 % but not so much to the 26.4%, I buy most of my games new.

Cheese +1 for dropping Richie RIch images on us

"How rich can you get? You're never gonna know 'til you've met... this young boy, Richie Rich is his name!...."

And that was from memory. Sad, I know.

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GameStop enjoys $9.08 billion in sales in FY2009, $377 million profit

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