Retailer GameStop continues to grow its earnings, reporting sales up 5.1 percent to $2.08 billion in its first fiscal quarter alongside increased profits of $75.2 million, up 6.8 percent year over year. According to the company, it now boasts a 62 percent compound annual growth rate of first-quarter earnings.
Although the company credits its used product business -- which saw margins of 48.1 percent during the quarter -- as a source of its continued resilience, new software sales were up 13.3 percent thanks to new releases like Battlefield: Bad Company 2, God of War III, Final Fantasy XIII and others. In particular, GameStop says new marketing initiatives helped it capture marketshare among new releases.
However, declining hardware prices and supply constraints over the past few months weighed on comparable store sales, which declined 1.6 percent.