GameStop on Thursday reported a jump in sales and earnings despite a tough retail environment.

The Tex.-based videogame retailer said it generated $8.8 billion in sales for the fiscal year ended in January, a 24 percent year-on-year rise. Full-year net earnings rose 38 percent to $398 million.

For the fiscal fourth quarter, GameStop reported $3.5 billion in sales, up 22 percent year-on-year. Q4 net earnings were up 22 percent to $232.3 billion.

GameStop said the sales and earnings results are the highest yet\ for the company.

Dan DeMatteo, GameStop's CEO, said in a statement, “In spite of the current worldwide retail environment, GameStop’s financial performance is being driven by delivering to consumers what they want: stores in a wide range of locations, knowledgeable associates and most importantly, options that provide value.

"Our affinity with consumers, combined with our solid business model, prudent financial management practices, expansive brand presence and strategic merchandising, allowed us to achieve a record eighth straight year of sales and earnings growth. In 2008, we opened or acquired 1,002 stores worldwide, including the acquisition of Micromania, the largest video game retailer in France.”

On the back of an expanding hardware base, a strong lineup of software from publishers and "increasing consumer enthusiasm for our trade-in model," GameStop expects sales in fiscal 2009 to grow between 10 and 12 percent; comparable store sales to rise 4 to 6 percent, and diluted earnings per share to rise between 18 and 22 percent.

GameStop expects comparable store sales to range from flat to +2 percent in the first quarter of this year, on a tough comp (Mario Kart Wii, Super Smash Bros. Brawl and Grand Theft Auto IV all launched in GameStop's fiscal Q1 last year). This year, GameStop said the Nintendo DSi, Street Fighter IV, Resident Evil 5 and Halo Wars will drive sales during the first quarter.