GameStop annual sales show slight increase in 2014

Erik Johnson
GameStop annual sales show slight increase in 2014

GameStop has released its annual financial results for its past fiscal year, with the specialty chain reporting revenue of $9.3bn for the period.

Games Industry reports that the figure translates to a modest 2.8 per cent increase, instead of the 14 per cent sales growth GameStop had projected for the period – due to the late 2013 launches of PS4 and Xbox One.

GameStop's hardware segment was still very solid for the year, with sales up 17 per cent to $2.03bn. Mobile and consumer electronics were up 71 per cent to $518.8m as well, but those were offset by the new game software sales segment, which dropped 11 per cent during the period to $3.09bn.

Digital revenue was down less than 1 per cent to $216.3m, while net income for the firm was up nearly 11 per cent – reaching $393.1m.

"In our core video game business, we achieved our highest market share in history with 28 percent share of next-generation hardware, 46 percent share of next-generation software and an estimated 42 percent share of downloadable content," GameStop CEO Paul Raines said.

"Meanwhile, our Technology Brands segment exceeded expectations, contributing 5 percent to our operating income and to our highest-ever annual gross margin of 29.9 percent, as we rapidly expanded the footprint of our AT&T wireless and Apple retail businesses."

Looking forward, GameStop projects fiscal year 2015 sales to range between down 1 per cent and up 4 per cent. The company will focus on more than doubling the amount of its non-gaming shops in hopes to increase its reach in tech segments. It will also look to trim operational game stores by 3 per cent.

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