Retail giant GameStop has announced plans to open up to 600 new stores in 2008 following record-high sales in the company's 2007 fiscal year.
The company's fiscal 2007 year-end report shows sales of $7.1 billion, a 33 percent increase over the previous year, with net earnings up 82 percent to $288.3 million. For the company's final quarter, which ended February 2, GameStop's net income increased 46 percent to $189.8 million on revenues of $2.87 billion.
"Our performance in 2007 was impressive from many perspectives. But what is particularly noteworthy is that 2007 was a transformative year with hardware sales setting records and the installed base of users reaching an all-time high," said GameStop CEO Richard Fontaine. "Likewise, the expanding demographic profile of the videogame player has moved this business into the mainstream of entertainment. This will be compounded by a strong 2008 videogame title lineup and the value aspect of GameStop's used model that appeals to a broad base of budget conscious consumers."
GameStop also announced plans to open 575-600 new stores worldwide to take advantage of the ongoing growth of the videogame market. The company reported a 19 percent growth in hardware sales over its previous fiscal, which came despite supply problems with both the Xbox 360 and Nintendo Wii.
"Prospects for the 575-600 new store openings in 2008 look very promising even with the current concerns about the U.S. economy," Fontaine continued. "As one of the few American retailers actively seeking many new sites, GameStop is positioned to secure better locations with more advantageous lease terms and is more frequently being viewed as a critical brand to anchor strip centers."
GameStop currently operates 5264 stores worldwide, including 586 new stores that were opened in 2007.