GameStop Posts Rosy Quarterly Stats
GameStop is doing well, but nobody is all that surprised.
The retailer has reported their earnings for the quarter ending May 3, and the company posted $2 billion in overall revenue, which is up 7 percent as compared to the $1.87 billion raked in last year.
Profit for the quarter hit $68 million, which is well up (24.5 percent) from last year's net earnings of $54.6 million. Continued strong sales of the PlayStation 4 and Xbox One have certainly helped, as new hardware surged 81.1 percent, and combined PS4 and Xbox One sales in the US between November and April were more than double that of the PS3 and Xbox 360 sales in the same six-month period.
The digital business rose 9.5 percent, and the company's mobile electronics category climbed a full 100 percent due to GameStop's new off-shoot brands Spring Mobile and Simply Mac. The only downside can be found in new software sales, which fell 20.4 percent due to fewer AAA titles launching during the quarter. Still, pre-owned sales rose 5.3 percent.
Said GameStop CEO Paul Raines:
"I am pleased to report solid financial and operational results in the first quarter. The next-gen console business is meeting our targets, our digital properties continue to grow and our new tech brands segment is positively contributing to our profitability."
Furthermore, the company's future outlook is good. GameStop expects more increases down the road, including a 6-12 percent growth in comparable store sales.
5/22/2014 10:09:42 PM John Shepard