That it outperformed the market” will likely not completely appease GameStop's shareholders after the company reported a 12.5 per cent decline in like-for-like sales for its fiscal Q1.
Total global sales fell $280k to 2bn. Net earnings for the quarter fell slightly to $72.5m.
Pre-owned sales suffered a slight decline, while new hardware and software suffered a more dramatic fall. Digital receipts, however, climbed 23 per cent. Mobile sales reached $12m, with GameStop saying it remains on target to reach a mobile sales total of $150-$200 in 2012.
GameStop continues to outperform the market in new game sales through the late stages of this console cycle,” CEO Paul Raines stated.
Despite slower store traffic during the quarter, we achieved our earnings target due primarily to gross margin expansion and positive profit contributions from our pre-owned, mobile and digital businesses. We expect those segments to fill the profitability gap as we transition to the new console cycle.”