Record year for Game but current trading slips

In what was a record year in sales and profits for the games retailer, group like-for-likes grew 8.8 per cent, with group sales soaring 32.2 per cent to £1.97bn.

In the 11 weeks to April 18, group like for likes dropped 6.3 per cent, against “very strong comparatives”, with total sales climbing 1 per cent. The retailer said these results were ahead of expectations.

In the 53 week period, group gross margin improved by 140 basis points.

The retailer said its pre-owned offer, its well-established supplier relationships, its reward card scheme and its specialist retail proposition contributed to the record performance.

UK and Ireland like for like sales rose 10.7 per cent with total sales increasing 25.7 per cent in the 53 weeks.  International like for likes climbed 4.6 per cent with revenue jumping 50.6 per cent.

Game said it is “well placed to benefit” from the “unprecedented changes to the retail landscape”, with the collapse of Woolworths and Zavvi last year.

The retailer said the integration of Gamestation has “exceeded expectations” and sales in its ecommerce operation increased 85 per cent.

Game, which has 690 UK stores and 650 international stores, will open a further 70 to 80 stores this year.

Chief executive Lisa Morgan said: “The strength of our performance was entirely attributable to our employees and our credentials as a specialist retailer. The outlook for the wider global economy remains uncertain.  However, we have seen the games market expand to record levels. It is now a key part of mass market entertainment. Console ownership continues to grow and innovative products continue to attract new customers and we are confident about our prospects going forward.”

Chairman Peter Lewis said: “These were exceptional results. The principal drivers have been third generation formats with many products now having a wider demographic appeal, the further development of our specialist credentials, successful international expansion and the many benefits arising from our acquisition of Gamestation. Current trading performance is ahead of our expectations. The Board is confident in the outlook for the year to 31 January 2010.”