GameStop income dips, at the low end of expectations

Ben Parfitt
GameStop income dips, at the low end of expectations

Retailer GameStop has reported an annual fall in sales and profit.

Global net sales fell 3.6 per cent to $2.016m for the quarter ending October 31st, while profit fell 11.4 per cent to $57m. Currency fluctuations played a part in the numbers, however, and the company's full year forecasts remain unchanged.

New console hardware sales fell 20.4 per cent while new software sales fell 9.3 per cent – a fact it blamed on tough comparisons with last year's releases of Destiny and Super Smash Bros. Pre-owned sales were up slightly at 0.6 per cent.

Non-GAAP digital numbers increased 8.7 per cent, with digital sales hitting $40m in the period.

Technology sales were well up, however, with revenues climbing 64.2 per cent. Mobile sales grew 31.1 per cent. In total tech contributed 14 per cent of the company's overall gross profit. Merchandise sales rocketed by 400 per cent thanks to GameStop's ThinkGeek acquisition.

Our third quarter results were at the low end of our guidance range due to lower than expected new software and hardware sales and delays in technology brands store openings; however, our expectations for the full year have not changed,” CEO Paul Raines said.

Looking ahead to the fourth quarter, a solid slate of new video games, coupled with contributions from our diversified AT&T, Apple and ThinkGeek businesses and our in-store collectibles offerings are expected to drive our fourth quarter results.”

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