UPDATE 2-GameStop sees growth despite economic slowdown

It had previously forecast profit of $1.29 to $1.34 a share, and analysts surveyed by Reuters Estimates had expected $1.35.

Quarterly sales were $3.5 billion, up 22 percent from a year earlier, the Grapevine, Texas-based company said.

For the just-ended fiscal year, GameStop estimated earnings per share at $2.39 to $2.40, on par with Wall Street views of $2.40. It expects to report sales of $8.8 billion.

It sees sales growth this year of 10 percent to 12 percent, and an increase in earnings per share of 18 percent to 22 percent.

The company, which plans to release its full quarterly report in March, expects to open more than 400 new stores worldwide this year. It currently has more than 6,200 stores in 17 countries.

"The video game business continues to enjoy robust growth, making it the fastest growing of the many consumer goods categories," said DeMatteo. "2008 marked yet another year of strong new hardware sales, which will again help drive sales of new video games in the years ahead."

Shares of GameStop were up $2.83, or 11.4 percent, at $27.70 in morning New York Stock Exchange trade. (Reporting by Franklin Paul; Editing by Derek Caney and Lisa Von Ahn)