GameStop Enjoys Another Rosy Quarter
GameStop continues to profit from the launch of two new video game consoles.
The retailer has reported its earnings for the second quarter ending August 2 and the situation is quite rosy.
The company posted revenue of $1.73 billion, which is up 25.1 percent in the year-over-year comparison. Profit came in at $24.6 million, which is a huge increase of 134.3 percent; last year's quarterly net earnings only hit $10.5 million.
GameStop's digital business rose 17.6 percent to $179.2 million thanks to strong platform currency, mobile and Steam Wallet sales. New hardware sales jumped 124.8 percent thanks to "worldwide demand" for the PlayStation 4 and Xbox One, and software sales rose 15.6 percent. Watch Dogs and Mario Kart 8 were top performers in the quarter. Finally, GameStop's pre-owned business went up 5.5 percent.
Said CFO Rob Lloyd:
"The second quarter demonstrates the power of the new console cycle and all of our business units, including Technology Brands, positively contributing to the company's sales and profits. The back half of the year is filled with exciting games and products coming to market and I am confident that we are prepared to capitalize on these opportunities."
And here come the holidays!
8/21/2014 9:57:59 PM John Shepard