GAME Group Sees Tough Start To FY 2011; Names New CEO

17th Jun 2010 07:20

LONDON (Dow Jones)--Video game retailer GAME Group PLC (GMG.LN) Thursday said it had a tough start to the fiscal 2011 and now expects full-year gross margins to fall around 100 basis points on the year. For the first 19 weeks to June 12 GAME, which trades from 641 stores across the U.K., said total group sales were down 11.4% on the year and sales from stores open more than a year fell 12%. In the U.K. and Ireland, total sales were down 19% and in its international business, total sales were up 1.2%. Online sales increased 14%. However the company said it outperformed the market by offering customers exclusive extras on new product releases, such as unique digital weapons and vehicle designs for the game Battlefield: Bad Company 2. Game also Thursday named Ian Shepherd as its new chief executive from June 28, taking over from interim CEO Chris Bell who will return to his role as senior executive director. Shepherd has spent the past four years at Vodafone Group PLC (VOD.LN), most recently as U.K. consumer director. Lisa Morgan, who took up the CEO role three years ago, 11 years after joining the company, left in April following a full-year profit slump. -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; [email protected] (END) Dow Jones Newswires June 17, 2010 02:20 ET (06:20 GMT)