GameStop Reports Second Quarter Financial Results

GameStop (NYSE:GM), the largest video game retailer worldwide announced damped sales and net loss figures for the second quarter. Hardware, collectibles, and pre-owned sales dropped the most significantly, as the company cited cyclical factors affecting sales numbers.

As quoted in the press release:

Jim Bell, GameStop’s chief financial officer said, “While we experienced sales declines across a number of our categories during the quarter, these trends are consistent with what we have historically observed towards the end of a hardware cycle. We will continue to manage the underlying businesses to produce meaningful cash returns, while maintaining a strong balance sheet and investing responsibly in our strategic initiatives.”

GameStop’s second quarter total global sales decreased 14.3% (13.1% in constant currency) to $1.3 billion, resulting in a consolidated comparable store sales decrease of 11.6%.

• New hardware sales decreased 41.1%, reflective of recent announcements for next generation console launches in 2020.

• New software sales decreased 5.3%, with growth in Nintendo Switch software titles more than offset by weaker title launches across other consoles in the quarter compared to last year.

• Accessories sales decreased 9.5%.

• Pre-owned sales declined 17.5% with declines in hardware and software.

• Digital receipts decreased 11.2% to $227.2 million due to weaker title launches in the quarter compared to last year.

• Collectibles sales increased 21.2%, with continued strong double-digit growth in both domestic and international stores.

Click here to read the full press release.