Bolstered By Digital, GameStop Posts Big Annual Numbers
More big numbers for GameStop.
The retailer has reported their earnings for the fourth quarter and fiscal year, which ended on January 31. Sales were down during the last quarter but the yearly revenue rose and digital continues to be on the rise.
For the fourth quarter, overall global sales came in at $3.48 billion, which is a 5.6 percent fall compared to the $3.68 billion they tallied in the same quarter last year. New software, mobile, and consumer electronics posted gains, but hardware sales fell. That's not too surprising, given the fact that last year, GameStop was reveling in having not one, but two new consoles on store shelves.
Digital sales rose 41.4 percent to $368.8 million, led by downloadable content and mobile digital sales, and fourth quarter net income came in at $244.1 million. That's up from last year's fourth-quarter take of $220.5 million. As for the fully year, sales hit $9.3 billion, up from the $9.04 billion posted last year, due to "better than expected" PS4 and Xbox One sales. Said GameStop CEO Paul Raines:
"2014 was a year of continued growth, diversification, and expansion of the GameStop family of specialty retail brands. In our core video game business, we achieved our highest market share in history with 28 percent share of next-generation hardware, 46 percent share of next-generation software and an estimated 42 percent share of downloadable content."
3/26/2015 8:48:25 PM Ben Dutka