GameStop Revenue Soars Due To GTAV, But Stock Falls
When a mega blockbuster like Grand Theft Auto V launches, the retailer is bound to benefit.
Thanks to the record-breaking launch of GTAV in September, GameStop's third-quarter report looks mostly rosy.
New software sales rose 43.1 percent to $1.1 billion and new hardware sales increased 15.3 percent to $213 million, thanks to a strong showing by the Nintendo 2DS and 3DS. We won't see sales reports for the PlayStation 4 or Xbox One until next quarter, obviously. But while software and hardware climbed, other categories fell:
Overall pre-owned sales fell 2 percent to $486.6 million (down from $496.3 million last year), and its mobile business saw sales fall from $321.9 million to $305.2 million. Still, all told, global revenue was up 18.8 percent year-over year ($2.11 billion), and the retailer posted a profit of $68.6 million for the quarter, well up from the net of $47.2 million in 2012.
Said GameStop CEO Paul Raines:
Our strong third quarter sales results give us great momentum as we enter the new console cycle. Consumer appetite for the new consoles is very strong judging by last week’s successful PS4 launch and the excitement for tonight’s Xbox One launch event. Globally, we are executing our unique playbook to maximize our position of strength."
And yet, all this didn't help their stock. Shares have fallen off significantly, down nearly 10% to $47.33. This could be due to the retailer's predictions for the holiday quarter, which aren't quite as high as anticipated.
11/21/2013 10:58:23 AM Ben Dutka