GameStop on Thursday forecasted a boost in fourth-quarter sales buoyed by the company's trade-in model that is playing out well in the recession.

The video game retailer expects its earnings per share to range from $1.33 to $1.34, a 17 percent to 18 percent increase from the same period a year ago. Sales have also climbed 22 percent from the same period last year to $3.5 billion.

“Although our trade-in model is widely known as a driver of new software sales, our exceptional growth is also a function of thousands of conveniently located stores, excellent supply chain management, and the expertise of our associates who operate GameStop stores,”  GameStop CEO Dan DeMatteo said in a statement.

GameStop expects full-year earnings per share to range from $2.39 to $2.40, a 33 percent increase from the previous year. Full year sales jumped 24 percent from last year to $8.8 billion.

The ability to trade in games is what trumps other retailers, much to the chagrin of video game developers and publishers. Under the business model, GameStop will buy used and new games from customers for a small price and then resell them for slightly cheaper than retail.

The used game sales allow GameStop to maximize profit and consumers to save a few dollars.

While some companies are trying to move toward digital distribution to avoid losing money to used game sales, GameStop doesn’t seem to be concerned, as it expects sales growth of between 10 percent and 12 percent for the 2009 fiscal year, with earnings per share increasing 18 percent to 22 percent. The company also plans to open at least 400 new stores worldwide.

GameStop shares rose $2.38, or 9.57 percent, at $27.23.