In the 45 weeks to December 8, group sales – including Gamestation, which it bought in May – rocketed 89.1 per cent. Excluding Gamestation, like-for-likes jumped 44.1 per cent.
Morgan said: “We have expanded our product range and geographical reach. Our business is very driven by new technology, such as the Nintendo Wii, which is exceeding expectations.”
In the UK and Ireland, sales rocketed 92.3 per cent and like-for-likes 46.1 per cent. International sales climbed 80 per cent and comparable store sales advanced 38.2 per cent.
Morgan said: “We are present in nine markets and have seen a consistent performance across them all. We are very focused on these existing territories, but will continue to look at other opportunities for the future.” France and Spain are Game’s biggest markets outside the UK.
Morgan said online, which accounts for about 4 per cent of total sales, has performed extremely well. “Online offers a significant opportunity, but we are predominantly focused on the high street and shopping centre stores,” she said.
The next couple of weeks are key for the retailer, with about 25 per cent of group sales achieved historically between now and the end of the year. Morgan said she was looking forward to Christmas and confident of a successful outcome for the year. She added that 2007 was a strong year for hardware, but the mix will change next year when software will drive sales.
Seymour Pierce analyst Andrew Wade said Game’s update was “stunning, confirming all that we have been hearing from the high street regarding the huge demand for computer games and consoles”. However, he was cautious about the medium-term outlook, given the cyclical nature of the business.
The Competition Commission inquiry into Game’s acquisition of Gamestation – which received provisional clearance last week – is expected to be completed at the end of January.
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