GameStop: 2012 Was "Challenging," But We Remain Strong
Last year was "challenging" but the future holds promise, according to mega video game retailer GameStop.
The company reported its fourth quarter and full-year 2012 financial results, noting that the last year was a difficult one for the industry.
GameStop CEO Paul Raines said they "focused on factors within our control" and "expanded our market leadership position" while at the same time controlling spending. He also added that it was critical for the corporation to invest further in the mobile and digital businesses for the sake of future success. As for the fourth quarter numbers, overall sales hit $3.56 billion, slightly down from the $3.58 billion from the previous year. Overall store sales fell 4.6%, but digital sales surged 60.3% and mobile sales earned $100 million. Adjusted net earnings rose 9.5% to $262.3 million.
For the total fiscal 2012 results, GameStop reported worldwide sales of $8.89 billion, which is down 7% from the $9.55 billion from 2011. Comparable store sales fell 8%. Adjusted net earnings came in at $403 million, which is also a bit down from the $405.1 million earned the previous year. But looking down the road, GameStop is expecting the arrival of the new consoles and Grand Theft Auto V to boost the market. Said Raines:
"As we look towards the start of the new console cycle, our industry market model indicates a return to growth with the launch of new game systems. GameStop is strong, healthy and ready to lead the industry and its customers into the next phase of gaming."
3/28/2013 12:54:38 PM Ben Dutka