Gross margin rate expands nearly 400 basis points
in 2016 to a record rate of 35.0%
GameStop Corp. (NYSE:GME), a global family of specialty retail
brands that makes the most popular technologies affordable and
simple, today reported sales and earnings for the fourth quarter
and fiscal year ended January 28, 2017.
Paul Raines, chief executive officer, stated, “GameStop’s
transformation continued to take hold in 2016, as our non-gaming
businesses drove gross margin expansion and significantly
contributed to our profits. Meanwhile, the video game category was
weak, particularly in the back half of 2016, as the console cycle
ages. Looking at 2017, Technology Brands and Collectibles are
expected to generate another year of strong growth, and new
hardware innovation in the video game category looks promising. As
we continue our transformation plan, we will also be focused on
managing SG&A spend, rationalizing our global store portfolio,
and maximizing free cash flow generation to drive shareholder
value.”
Fourth Quarter ResultsTotal global sales
decreased 13.6% to $3.05 billion, while consolidated comparable
store sales declined 16.3% (-20.8% in the U.S. and -4.6%
internationally). As stated in the company’s holiday sales release
in January, the fourth quarter was significantly impacted by weak
sales of certain AAA titles and aggressive console promotions by
other retailers on Thanksgiving Day and Black Friday. As a result,
new hardware sales declined 29.1% and new software sales declined
by 19.3%. Pre-owned sales outperformed new video games, declining
6.7% compared to the fourth quarter of 2015.
Non-GAAP digital receipts declined 7.7%, to $373.4 million and
GAAP digital sales declined 5.8%, to $57.2 million. Digital sales
were impacted by the decline in new video game
sales. Technology Brands sales, which are not included
in comparable store sales, increased 43.9% to $256.0 million,
primarily driven by year-over-year store growth. Technology Brands
adjusted operating earnings were $34.0 million, an 88.9% increase
compared to $18.0 million in the prior-year quarter. On a GAAP
basis, operating losses were $12.0 million due to store
rationalization and asset impairment charges recorded during the
fourth quarter.
Collectibles sales rose 27.8% to $212.4 million, driven by
strong sales of Pokémon-related toys and apparel. The company added
17 Collectibles stores during the quarter, bringing the total
global portfolio to 86 stores, including 24 ThinkGeek stores in the
U.S.
GameStop’s fourth quarter GAAP net earnings were $208.7 million,
or $2.04 per diluted share, compared to net earnings of $247.8
million, or $2.36 per diluted share in the prior-year quarter. The
fourth quarter results include charges of $56.5 million ($35.1
million, net of tax), or $0.34 per diluted share. These charges are
primarily related to store rationalization and asset impairments to
optimize the Technology Brands store portfolio after four years of
rapid expansion. Additionally, the quarter and the full year were
positively impacted by a $27.3 million tax benefit related to
international tax planning efforts.
Excluding these charges, GameStop's adjusted net earnings for
the fourth quarter were $243.8 million, compared to adjusted net
earnings of $251.6 million in the prior-year quarter. Adjusted
diluted earnings per share were $2.38 compared to adjusted diluted
earnings per share of $2.40 in the prior-year quarter.
Fiscal 2016 ResultsTotal global sales decreased
8.1% to $8.61 billion, while consolidated comparable store sales
declined 11.0% (-13.5% in the U.S. and -4.4% internationally).
Highlights of fiscal 2016 include:
- Expanded gross margin rate nearly 400 basis points to a record
of 35.0%, representing our third consecutive year of gross margin
improvement.
- Technology Brands achieved the goal of delivering between $85
million and $100 million of adjusted operating earnings in fiscal
2016 as it contributed $90.2 million for the year, a 216.4%
increase over 2015. On a GAAP basis, operating earnings increased
63.7% from $27.0 million to $44.2 million.
- The Collectibles business achieved the high-end of its $450 to
$500 million revenue target, as sales increased 59.5% to $494.1
million in fiscal 2016.
- Non-physical gaming businesses comprised 36.9% of GME’s total
adjusted operating earnings in fiscal 2016 compared to 24.5% in
fiscal 2015.
- Non-GAAP digital receipts grew 4% to $1.1 billion. GAAP digital
revenue declined 3.9% to $181.0 million.
GameStop's fiscal 2016 GAAP net earnings were $353.2 million,
including $60.6 million ($37.7 million, net of tax) of charges
related to store closings and asset impairments. This compared to
net earnings of $402.8 million in fiscal 2015. Diluted earnings per
share were $3.40, compared to diluted earnings per share of $3.78
in fiscal 2015.
Excluding these charges, GameStop's adjusted net earnings for
the full year were $390.9 million, or $3.77 per diluted share,
compared to adjusted net earnings of $415.6 million, or $3.90 per
diluted share, in fiscal 2015.
A reconciliation of non-GAAP adjusted net income, operating
earnings and Tech Brands operating earnings to GAAP is included
with this release (Schedule III).
Capital Allocation UpdateDuring the fourth
quarter, the company repurchased 1.66 million shares at an average
price of $23.56, or $39.1 million of stock. For the full year,
GameStop repurchased 3.01 million shares at an average price of
$24.94, or $75.1 million of stock. As of today, there is $170.2
million remaining on the existing repurchase authorization.
On March 1, 2017, GameStop announced a 2.7% increase of its
regular annual cash dividend from $1.48 to $1.52 per share. On
March 28, the company will pay its quarterly cash dividend of $0.38
per common share.
Earnings Outlook Rob Lloyd, GameStop chief
financial officer, stated, “Going forward, GameStop will provide
annual guidance, and no longer provide quarterly EPS or same store
sales guidance. We believe that providing only annual guidance will
reduce investor distraction as we continue to diversify the company
and seek to maximize long-term shareholder value. It also benefits
our organization in that it concentrates attention on longer-term
targets and reduces the focus on short-term results, which can be
volatile given the current business environment.”
2017 OutlookGameStop is providing the following
guidance for fiscal 2017 (dollars in millions, except per
share):
Total Sales |
|
-2.0% to +2.0% |
|
|
|
Comparable Store Sales
(excludes Tech Brands stores) |
|
-5.0% to 0.0% |
|
|
|
Depreciation &
Amortization Expense |
|
$150.0 to $160.0 |
|
|
|
Income Tax Rate
|
|
35.0% to 35.5% |
|
|
|
Operating Margin |
|
6.5% to 7.0% |
|
|
|
Net Income |
|
$320.0 to $354.0 |
|
|
|
Earnings Per Share
(diluted) |
|
$3.10 to $3.40 |
|
|
|
Capital
Expenditures |
|
$110.0 to $120.0 |
|
|
|
Technology Brands
Operating Earnings |
|
$120.0+ |
Earnings per share guidance is calculated based on weighted
average shares outstanding of 102,500,000.
In 2017, the Company anticipates that it will open approximately
35 new Collectibles stores globally, and approximately 65 new
Technology Brand stores. The Company also anticipates that it will
close between 2% to 3% of its global store footprint.
Conference Call InformationA conference call
with GameStop Corp.’s management is scheduled for March 23, 2017 at
4:00 p.m. CT to discuss the company’s financial results. The phone
number for the call is 888-576-4397 and the passcode is
8146181. This call, along with supplemental information, can
also be accessed at GameStop Corp.’s investor relations home page
at http://investor.GameStop.com/. The conference call will be
archived for two months on GameStop’s corporate website.
About GameStopGameStop Corp. (NYSE:GME), a
Fortune 500 company headquartered in Grapevine, Texas, is a
global, multichannel video game, consumer electronics and wireless
services retailer. GameStop operates more than 7,500
stores across 14 countries. The company's consumer product network
also includes www.gamestop.com; www.Kongregate.com, a
leading browser-based game site; Game Informer® magazine, the
world's leading print and digital video game publication; and
ThinkGeek, www.thinkgeek.com, the premier retailer for the
global geek community featuring exclusive and unique video game and
pop culture products. Our Technology Brands segment includes 1,522
Simply Mac, Spring Mobile AT&T and Cricket stores. Simply
Mac, www.simplymac.com, sells the full line
of Apple products, including laptops, tablets, and
smartphones and offers Apple certified warranty and
repair services. Spring Mobile, www.springmobile.com, sells
all of AT&T’s products and services, including DIRECTV and
offers pre-paid wireless services, devices and related accessories
through its Cricket branded stores in select markets in the U.S.
General information about GameStop Corp. can be obtained
at the company’s corporate website.Follow @GameStop and
@GameStopCorp. on Twitter and
find GameStop on Facebook at www.facebook.com/GameStop.
Non-GAAP MeasuresAs a supplement to our
financial results presented in accordance with U.S. generally
accepted accounting principles (GAAP), GameStop may use certain
non-GAAP measures, such as adjusted operating earnings, adjusted
net income, digital receipts and constant currency, to provide a
clearer perspective of the current operating performance of the
company. GameStop defines digital receipts as the full amount paid
by the customer for digital content at the time of sale and/or the
value attributed to digital content when physical and digital
products are sold combined. Results reported as constant currency
exclude the impact of fluctuations in foreign currency exchange
rates by converting our local currency financial results using the
prior period exchange rates and comparing these adjusted amounts to
our current period reported results. Our definition and calculation
of constant currency information may differ from that of other
companies. Non-GAAP financial measures should be viewed in addition
to, and not as an alternative for, the company's reported GAAP
financial results.
Safe Harbor This presentation contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements may
include, but are not limited to, the outlook for fiscal 2017,
future financial and operating results and projections, projected
store openings, timing and terms of potential acquisitions, the
company's plans, objectives, expectations and intentions, and other
statements that are not historical facts. Such statements are based
upon the current beliefs and expectations of GameStop's management
and are subject to significant risks and uncertainties. Actual
results may differ from those set forth in the forward-looking
statements. GameStop undertakes no obligation to publicly update or
revise any forward-looking statements. The following factors, among
others, could cause actual results to differ from those set forth
in the forward-looking statements: the inability to obtain
sufficient quantities of product to meet consumer demand, including
console hardware and accessories; the timing of release and
consumer demand for new and pre-owned video game titles; our
ability to continue to expand, and successfully open and operate
new stores for, our collectibles and tech brands businesses; risks
associated with achievement of anticipated financial and operating
results from acquisitions; our ability to sustain and grow our
console digital video game sales; the timing and amount of
recognition of tax attributes; the risks associated with
international operations, wireless industry partnerships and
operations and the completion and integration of acquisitions;
increased competition and changing technology in the video game
industry, including browser and mobile games and digital
distribution of console games, and the impact of that competition
and those changes on physical video game sales; the costs and
consequences of legal proceedings and tax audits; and changes in
domestic or foreign laws and regulations that reduce consumer
demand for, or increase prices of, our products or otherwise
adversely affect our business. Additional factors that could cause
GameStop's results to differ materially from those described in the
forward-looking statements can be found in GameStop's Annual Report
on Form 10-K, as amended, for the fiscal year ended Jan. 30, 2016
filed with the SEC and available at the SEC's Internet site at
http://www.sec.gov or http://investor.GameStop.com.
|
GameStop Corp. |
Condensed Consolidated Statements of
Operations |
(in millions, except per share
data) |
(unaudited) |
|
|
|
|
|
|
|
13 weeks |
|
13 weeks |
|
|
ended |
|
ended |
|
|
Jan 28, 2017 |
|
Jan 30, 2016 |
|
|
|
|
|
Net sales |
$ |
|
3,045.4 |
|
$ |
|
3,525.0 |
|
Cost of sales |
|
|
2,037.5 |
|
|
|
2,481.8 |
|
|
|
|
|
|
Gross
profit |
|
|
1,007.9 |
|
|
|
1,043.2 |
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
646.3 |
|
|
|
613.9 |
|
Depreciation and
amortization |
|
|
41.2 |
|
|
|
43.4 |
|
Asset impairment
charges |
|
|
33.8 |
|
|
|
4.0 |
|
|
|
|
|
|
Operating
earnings |
|
|
286.6 |
|
|
|
381.9 |
|
|
|
|
|
|
Interest expense,
net |
|
|
13.8 |
|
|
|
5.5 |
|
|
|
|
|
|
Earnings
before income tax expense |
|
|
272.8 |
|
|
|
376.4 |
|
|
|
|
|
|
Income tax expense |
|
|
64.1 |
|
|
|
128.6 |
|
|
|
|
|
|
Net
income |
$ |
|
208.7 |
|
$ |
|
247.8 |
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
Basic |
|
$ |
2.04 |
|
|
$ |
2.38 |
|
Diluted |
|
$ |
2.04 |
|
|
$ |
2.36 |
|
|
|
|
|
|
Dividends per common
share |
|
$ |
0.37 |
|
|
$ |
0.36 |
|
|
|
|
|
|
Weighted average common
shares |
|
|
|
|
outstanding: |
|
|
|
|
Basic |
|
|
102.1 |
|
|
|
104.3 |
|
Diluted |
|
|
102.5 |
|
|
|
105.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Net
Sales: |
|
|
|
|
|
|
|
|
|
Net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
Cost of sales |
|
|
66.9 |
% |
|
|
70.4 |
% |
|
|
|
|
|
Gross
profit |
|
|
33.1 |
% |
|
|
29.6 |
% |
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
21.2 |
% |
|
|
17.4 |
% |
Depreciation and
amortization |
|
|
1.4 |
% |
|
|
1.3 |
% |
Asset impairment
charges |
|
|
1.1 |
% |
|
|
0.1 |
% |
|
|
|
|
|
Operating
earnings |
|
|
9.4 |
% |
|
|
10.8 |
% |
|
|
|
|
|
Interest expense,
net |
|
|
0.4 |
% |
|
|
0.1 |
% |
|
|
|
|
|
Earnings
before income tax expense |
|
|
9.0 |
% |
|
|
10.7 |
% |
|
|
|
|
|
Income tax expense |
|
|
2.1 |
% |
|
|
3.7 |
% |
|
|
|
|
|
Net
income |
|
|
6.9 |
% |
|
|
7.0 |
% |
|
|
|
|
|
|
GameStop Corp. |
Condensed Consolidated Statements of
Operations |
(in millions, except per share
data) |
(unaudited) |
|
|
|
|
|
|
|
52 weeks |
|
52 weeks |
|
|
ended |
|
ended |
|
|
Jan 28, 2017 |
|
Jan 30, 2016 |
|
|
|
|
|
Net sales |
$ |
|
8,607.9 |
|
$ |
|
9,363.8 |
|
Cost of sales |
|
|
5,598.6 |
|
|
|
6,445.5 |
|
|
|
|
|
|
Gross
profit |
|
|
3,009.3 |
|
|
|
2,918.3 |
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
2,252.6 |
|
|
|
2,108.9 |
|
Depreciation and
amortization |
|
|
165.2 |
|
|
|
156.6 |
|
Asset impairment
charges |
|
|
33.8 |
|
|
|
4.6 |
|
|
|
|
|
|
Operating
earnings |
|
|
557.7 |
|
|
|
648.2 |
|
|
|
|
|
|
Interest expense,
net |
|
|
53.0 |
|
|
|
23.0 |
|
|
|
|
|
|
Earnings
before income tax expense |
|
|
504.7 |
|
|
|
625.2 |
|
|
|
|
|
|
Income tax expense |
|
|
151.5 |
|
|
|
222.4 |
|
|
|
|
|
|
Net
income |
$ |
|
353.2 |
|
$ |
|
402.8 |
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
Basic |
|
$ |
3.42 |
|
|
$ |
3.80 |
|
Diluted |
|
$ |
3.40 |
|
|
$ |
3.78 |
|
|
|
|
|
|
Dividends per common
share |
|
$ |
1.48 |
|
|
$ |
1.44 |
|
|
|
|
|
|
Weighted average common
shares |
|
|
|
|
outstanding: |
|
|
|
|
Basic |
|
|
103.4 |
|
|
|
106.0 |
|
Diluted |
|
|
103.8 |
|
|
|
106.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Net
Sales: |
|
|
|
|
|
|
|
|
|
Net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
Cost of sales |
|
|
65.0 |
% |
|
|
68.8 |
% |
|
|
|
|
|
Gross
profit |
|
|
35.0 |
% |
|
|
31.2 |
% |
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
26.2 |
% |
|
|
22.6 |
% |
Depreciation and
amortization |
|
|
1.9 |
% |
|
|
1.7 |
% |
Asset impairment
charges |
|
|
0.4 |
% |
|
|
0.0 |
% |
|
|
|
|
|
Operating
earnings |
|
|
6.5 |
% |
|
|
6.9 |
% |
|
|
|
|
|
Interest expense,
net |
|
|
0.6 |
% |
|
|
0.2 |
% |
|
|
|
|
|
Earnings
before income tax expense |
|
|
5.9 |
% |
|
|
6.7 |
% |
|
|
|
|
|
Income tax expense |
|
|
1.8 |
% |
|
|
2.4 |
% |
|
|
|
|
|
Net
income |
|
|
4.1 |
% |
|
|
4.3 |
% |
|
|
|
|
|
|
GameStop Corp. |
Condensed Consolidated Balance
Sheets |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Jan
28, |
|
Jan
30, |
2017 |
2016 |
ASSETS: |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
669.4 |
$ |
450.4 |
|
Receivables, net |
|
220.9 |
|
176.5 |
|
Merchandise
inventories, net |
|
1,121.5 |
|
1,163.0 |
|
Prepaid
expenses and other current assets |
|
128.9 |
|
147.6 |
|
|
Total current
assets |
|
2,140.7 |
|
1,937.5 |
|
|
|
|
|
|
|
Property
and equipment: |
|
|
|
|
|
|
Land |
|
|
18.6 |
|
17.3 |
|
Buildings
& leasehold improvements |
|
724.5 |
|
668.2 |
|
Fixtures
and equipment |
|
931.4 |
|
874.6 |
|
|
Total property and
equipment |
|
1,674.5 |
|
1,560.1 |
|
|
|
|
|
|
|
|
Less
accumulated depreciation and amortization |
|
1,203.5 |
|
1,075.6 |
|
|
Net property and
equipment |
|
471.0 |
|
484.5 |
|
|
|
|
|
|
|
Goodwill |
|
|
|
1,725.2 |
|
1,476.7 |
Other
noncurrent assets |
|
|
639.0 |
|
431.6 |
|
|
Total assets |
$ |
4,975.9 |
$ |
4,330.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY: |
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
$ |
616.6 |
$ |
631.9 |
|
Accrued
liabilities |
|
1,090.9 |
|
1,041.4 |
|
Income
taxes payable |
|
54.0 |
|
121.1 |
|
|
Total current
liabilities |
|
1,761.5 |
|
1,794.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
long-term liabilities |
|
|
145.3 |
|
109.5 |
Long-term
debt |
|
|
815.0 |
|
345.4 |
|
|
Total liabilities |
|
2,721.8 |
|
2,249.3 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
2,254.1 |
|
2,081.0 |
Total
liabilities and stockholders' equity |
$ |
4,975.9 |
$ |
4,330.3 |
|
|
|
|
|
|
|
|
GameStop Corp. |
|
Schedule I |
Sales Mix |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
|
Jan 28, 2017 |
|
Jan 30, 2016 |
|
|
Net |
|
Percent |
|
Net |
|
Percent |
|
|
Sales |
|
of Total |
|
Sales |
|
of Total |
Net Sales (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New video game
hardware |
$ |
583.0 |
|
19.1 |
% |
$ |
822.0 |
|
23.3 |
% |
New video game
software |
|
927.4 |
|
30.5 |
% |
|
1,149.8 |
|
32.6 |
% |
Pre-owned and value
video game products |
|
680.6 |
|
22.3 |
% |
|
729.3 |
|
20.7 |
% |
Video game
accessories |
|
238.5 |
|
7.8 |
% |
|
288.7 |
|
8.2 |
% |
Digital |
|
57.2 |
|
1.9 |
% |
|
60.7 |
|
1.7 |
% |
Technology Brands |
|
256.0 |
|
8.4 |
% |
|
177.9 |
|
5.0 |
% |
Collectibles |
|
212.4 |
|
7.0 |
% |
|
166.2 |
|
4.7 |
% |
Other |
|
90.3 |
|
3.0 |
% |
|
130.4 |
|
3.8 |
% |
|
|
|
|
|
|
|
|
|
Total |
$ |
3,045.4 |
|
100.0 |
% |
$ |
3,525.0 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52 Weeks Ended |
|
52 Weeks Ended |
|
|
Jan 28, 2017 |
|
Jan 30, 2016 |
|
|
Net |
|
Percent |
|
Net |
|
Percent |
|
|
Sales |
|
of Total |
|
Sales |
|
of Total |
Net Sales (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New video game
hardware |
$ |
1,396.7 |
|
16.2 |
% |
$ |
1,944.7 |
|
20.8 |
% |
New video game
software |
|
2,493.4 |
|
29.0 |
% |
|
2,905.1 |
|
31.0 |
% |
Pre-owned and value
video game products |
|
2,254.1 |
|
26.2 |
% |
|
2,374.7 |
|
25.4 |
% |
Video game
accessories |
|
676.7 |
|
7.9 |
% |
|
703.0 |
|
7.5 |
% |
Digital |
|
181.0 |
|
2.1 |
% |
|
188.3 |
|
2.0 |
% |
Technology Brands |
|
814.0 |
|
9.5 |
% |
|
534.0 |
|
5.7 |
% |
Collectibles |
|
494.1 |
|
5.7 |
% |
|
309.7 |
|
3.3 |
% |
Other |
|
297.9 |
|
3.4 |
% |
|
404.3 |
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
Total |
$ |
8,607.9 |
|
100.0 |
% |
$ |
9,363.8 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule II |
Gross Profit Mix |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
|
Jan 28, 2017 |
|
Jan 30, 2016 |
|
|
|
|
Gross |
|
|
|
Gross |
|
|
Gross |
|
Profit |
|
Gross |
|
Profit |
|
|
Profit |
|
Percent |
|
Profit |
|
Percent |
|
|
|
|
|
|
|
|
|
Gross Profit (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New video game
hardware |
$ |
58.6 |
|
10.1 |
% |
$ |
66.3 |
|
8.1 |
% |
New video game
software |
|
224.4 |
|
24.2 |
% |
|
274.0 |
|
23.8 |
% |
Pre-owned and value
video game products |
|
318.9 |
|
46.9 |
% |
|
339.5 |
|
46.6 |
% |
Video game
accessories |
|
82.8 |
|
34.7 |
% |
|
103.6 |
|
35.9 |
% |
Digital |
|
50.8 |
|
88.8 |
% |
|
49.9 |
|
82.2 |
% |
Technology Brands |
|
174.6 |
|
68.2 |
% |
|
110.8 |
|
62.3 |
% |
Collectibles |
|
68.6 |
|
32.3 |
% |
|
60.5 |
|
36.4 |
% |
Other |
|
29.2 |
|
32.3 |
% |
|
38.6 |
|
29.6 |
% |
|
|
|
|
|
|
|
|
|
Total |
$ |
1,007.9 |
|
33.1 |
% |
$ |
1,043.2 |
|
29.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52 Weeks Ended |
|
52 Weeks Ended |
|
|
Jan 28, 2017 |
|
Jan 30, 2016 |
|
|
|
|
Gross |
|
|
|
Gross |
|
|
Gross |
|
Profit |
|
Gross |
|
Profit |
|
|
Profit |
|
Percent |
|
Profit |
|
Percent |
|
|
|
|
|
|
|
|
|
Gross Profit (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New video game
hardware |
$ |
154.2 |
|
11.0 |
% |
$ |
175.5 |
|
9.0 |
% |
New video game
software |
|
600.4 |
|
24.1 |
% |
|
689.3 |
|
23.7 |
% |
Pre-owned and value
video game products |
|
1,044.1 |
|
46.3 |
% |
|
1,114.5 |
|
46.9 |
% |
Video game
accessories |
|
235.2 |
|
34.8 |
% |
|
255.5 |
|
36.3 |
% |
Digital |
|
155.5 |
|
85.9 |
% |
|
149.6 |
|
79.4 |
% |
Technology Brands |
|
554.6 |
|
68.1 |
% |
|
306.6 |
|
57.4 |
% |
Collectibles |
|
171.6 |
|
34.7 |
% |
|
116.6 |
|
37.6 |
% |
Other |
|
93.7 |
|
31.5 |
% |
|
110.7 |
|
27.4 |
% |
|
|
|
|
|
|
|
|
|
Total |
$ |
3,009.3 |
|
35.0 |
% |
$ |
2,918.3 |
|
31.2 |
% |
|
|
|
|
|
|
|
|
|
|
GameStop Corp. |
|
|
|
|
|
|
|
|
|
|
Schedule III |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
Non-GAAP
results |
|
|
|
|
|
|
|
|
|
The
following table reconciles the Company's operating earnings, net
income and earnings per share as presented in its unaudited
Consolidated Statements of Operations and |
prepared
in accordance with Generally Accepted Accounting Principles
("GAAP") to its adjusted operating earnings, net income and
earnings per share. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
|
52 Weeks Ended |
|
52 Weeks Ended |
|
|
|
Jan 28, 2017 |
|
Jan 30, 2016 |
|
Jan 28, 2017 |
|
Jan 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Technology
Brands Adjusted Operating Earnings |
|
|
|
|
|
|
|
|
|
Technology Brands
operating earnings |
|
$ |
(12.0 |
) |
|
$ |
16.9 |
|
|
$ |
44.2 |
|
|
$ |
27.0 |
|
|
Property,
equipment & other asset impairments |
|
|
16.6 |
|
|
|
0.6 |
|
|
|
16.6 |
|
|
|
0.6 |
|
|
Intangible impairments |
|
|
7.0 |
|
|
|
- |
|
|
|
7.0 |
|
|
|
- |
|
|
Store
closure costs |
|
|
19.8 |
|
|
|
- |
|
|
|
19.8 |
|
|
|
- |
|
|
Business
divestitures and other |
|
|
2.6 |
|
|
|
0.5 |
|
|
|
2.6 |
|
|
|
0.9 |
|
|
Technology Brands
adjusted operating earnings |
|
$ |
34.0 |
|
|
$ |
18.0 |
|
|
$ |
90.2 |
|
|
$ |
28.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Adjusted Operating Earnings |
|
|
|
|
|
|
|
|
|
Operating earnings |
|
$ |
286.6 |
|
|
$ |
381.9 |
|
|
$ |
557.7 |
|
|
$ |
648.2 |
|
|
Acquisition costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7.3 |
|
|
Property,
equipment & other asset impairments |
|
|
19.4 |
|
|
|
4.0 |
|
|
|
19.4 |
|
|
|
4.0 |
|
|
Intangible impairments |
|
|
14.4 |
|
|
|
- |
|
|
|
14.4 |
|
|
|
- |
|
|
Store
closure costs |
|
|
19.8 |
|
|
|
- |
|
|
|
19.8 |
|
|
|
- |
|
|
Business
divestitures and other |
|
|
2.9 |
|
|
|
2.6 |
|
|
|
7.0 |
|
|
|
6.2 |
|
|
Adjusted operating
earnings |
|
$ |
343.1 |
|
|
$ |
388.5 |
|
|
$ |
618.3 |
|
|
$ |
665.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Adjusted Net Income |
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
208.7 |
|
|
$ |
247.8 |
|
|
$ |
353.2 |
|
|
$ |
402.8 |
|
|
Acquisition costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7.3 |
|
|
Property,
equipment & other asset impairments |
|
|
19.4 |
|
|
|
4.0 |
|
|
|
19.4 |
|
|
|
4.0 |
|
|
Intangible impairments |
|
|
14.4 |
|
|
|
- |
|
|
|
14.4 |
|
|
|
- |
|
|
Store
closure costs |
|
|
19.8 |
|
|
|
- |
|
|
|
19.8 |
|
|
|
- |
|
|
Business
divestitures and other |
|
|
2.9 |
|
|
|
2.6 |
|
|
|
7.0 |
|
|
|
6.2 |
|
|
Tax
effect of non-GAAP adjustments |
|
|
(21.4 |
) |
|
|
(2.8 |
) |
|
|
(22.9 |
) |
|
|
(4.7 |
) |
|
Adjusted net
income |
|
$ |
243.8 |
|
|
$ |
251.6 |
|
|
$ |
390.9 |
|
|
$ |
415.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.39 |
|
|
$ |
2.41 |
|
|
$ |
3.78 |
|
|
$ |
3.92 |
|
|
Diluted |
|
$ |
2.38 |
|
|
$ |
2.40 |
|
|
$ |
3.77 |
|
|
$ |
3.90 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividend per common
share |
|
$ |
0.37 |
|
|
$ |
0.36 |
|
|
$ |
1.48 |
|
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used
in adjusted calculation |
|
|
|
|
|
|
|
|
|
Basic |
|
|
102.1 |
|
|
|
104.3 |
|
|
|
103.4 |
|
|
|
106.0 |
|
|
Diluted |
|
|
102.5 |
|
|
|
105.0 |
|
|
|
103.8 |
|
|
|
106.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Contact
Matt Hodges
Vice President, Corporate Communications
GameStop Corp.
(817) 424-2130
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