GameStop Revenue, Market Share Surge In Fourth Quarter
It was a happy holiday season for GameStop.
The retailer reported their fiscal fourth quarter earnings today and perhaps unsurprisingly, the new game consoles helped the retailer reach a quarterly revenue of $3.68 billion, up 3.4 percent year-over-year. Of that lofty number, the company raked in $3.15 billion during the 9-week holiday period alone.
Comparable store sales jumped 7.8 percent and according to GameStop CEO Paul Raines, the PlayStation 4 and Xbox One launches really helped to enliven the industry. Oh, and the retailer's market share hit an all-time high, too. Said Raines:
"The launch of new consoles in 2013 marked the return of innovation to the video game category and GameStop's market share increased to an all-time high. Our emerging digital and mobile businesses, which did not exist three years ago, surpassed $1 billion of revenue."
Total fourth-quarter net earnings came in at $220.5 million, which was down from the $261.1 million posted last year. This included asset impairment charges of $28.7 million, though, mostly due to the closing of Spawn Labs. As for cloud-based delivery, GameStop says it's "potentially revolutionary" but thus far, the consumer hasn't proven that he's ready to fully embrace this type of service.
New consoles are a boon for everyone!
3/27/2014 11:27:43 AM Ben Dutka