Broke No More, GameStop SurgesMatt Vella
GameStop’s (GME) decade-long comeback continues. The games franchise, which bills itself as the world’s largest entertainment software retailer, today announced record earnings for 2007. The company, which analysts thought would be doomed by the emergence of online games retailers, saw sales and net earnings grow 33% and 82% respectively.
GameStop is surging as the games industry continues to expand. (Comparable same store sales were up 24.7% for the year.) The company’s management says it is the world’s fastest growing retailer in the Fortune 500, measured by its boost in sales, a 50% increase in its operating earnings, and the opening of 586 news stores. The projected growth in software sales this year is only likely to ameliorate the outlook.