GameStop 2009 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2009 GameStop annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

Even with overall mixed results in 2009, our
focus remained steadfast. We managed our
business with an eye on improving operating
margins, building our brand and value
awareness with consumers, and gaining
share of voice and share of wallet in the
exploding worldwide gaming market. We
also continued to focus on our Buy-Sell-
Trade model. Although our first quarter
results gave us record sales and earnings,
the rest of the year did not produce the same
results. Total company sales for the year
were $9.08 billion; net earnings were $377.3
million and our diluted earnings per share
were $2.27, excluding debt retirement and
merger-related costs of $.02 per share.
Our unique Buy-Sell-Trade business model
has huge benefits. The model brings
customers into our stores and provides us
with an impressive inventory of pre-owned
merchandise we can sell. We returned
over $1 billion to customers in 2009, and
our customers often used these dollars to
purchase new titles from us.
As our team collaborated together to achieve
our results last year, we also focused on
changes to our business. These changes
include new talent among our senior
leadership team and more focus on areas
that will help us stay relevant in today’s ever-
changing world of video games.
Last summer, David Carlson, our founding
Executive Vice President and Chief Financial
Officer, announced his retirement in late
February. Dave was one of my closest
partners, as we began GameStop as a small
start-up 14 years ago. His great business
acumen helped guide us through multiple
mergers and acquisitions. Dave is the
epitome of what we expect from our team
members – passion, drive, determination
and unquestionable ethics. During the next
two years, Dave will remain a part of our
executive team, providing strategic financial
counsel as needed. Thank you Dave for
helping Richard Fontaine and me lead this
great company for so many years.
To ensure we have a seamless transition, I
named Robert Lloyd, Senior Vice President
and Chief Accounting Officer, as our
interim Chief Financial Officer. Rob is a
14-year GameStop veteran who has been
instrumental in guiding the company through
tremendous growth and success. He has
built and led a talented team that has
spearheaded many measures to complete
and integrate acquisitions, reduce operating
costs and strengthen our position in long-
term initiatives. This has kept us focused,
while enhancing value and contributing
to keeping GameStop competitive in the