GameStop Reports 2013 Holiday Sales Results
January 14 2014 - 8:30AM
Business Wire
Leading market share of Xbox One &
PlayStation 4 consoles drives comps of 10.2%
Global multichannel sales grew 56.7% compared
to 2012 holiday period
Company repurchases $39.5 million of stock
during holiday period
GameStop Corp. (NYSE: GME), the world’s largest multichannel
video game retailer, today reported sales results for the nine-week
holiday period ended January 4, 2014.
Total global sales for the period were $3.15 billion, a 9.3%
increase compared to the 2012 holiday sales period. Total
comparable store sales increased 10.2%, with U.S. comps of +7.1%
and international comps of +17.4%. Comparable store sales were
driven by new video game console sales as demonstrated by the 99.8%
increase in new hardware sales.
Paul Raines, chief executive officer, stated, “I am pleased to
report that the extensive planning by our entire team over the past
year to prepare for the new console launches paid off. Our
outstanding execution during the holidays resulted in GameStop
securing the number one market share position in the U.S. and in
most of the countries in which we operate today. GameStop also had
the highest software and accessory attach ratio of any retailer for
both new consoles. Building off this momentum, we are in an
excellent position to drive the global adoption of the next
generation of new video game products in 2014.”
During this transitional console period, strong sales of next
generation software were offset by a greater than expected decline
in Xbox 360 and PS3 software sales resulting in a 22.5% decline in
the new software category. The pre-owned category increased 7.0%,
driven by a stronger in-stock position and by the sale of
value-priced previous generation consoles. Gross margins for the
pre-owned category are expected to range from 46% to 49% for the
fourth quarter and the fiscal year.
The Other category sales increased by 4.8%. Within this
category, digital receipts were $207.3 million, an increase of
14.9%, and mobile revenues increased 23.8% to $94.8 million and now
include GameStop’s new technology brands (Spring Mobile, Simply Mac
and Aio Wireless).
GameStop’s global multichannel sales (mobile, web-in-store,
pick-up at store, ecommerce) grew 57% compared to the 2012 holiday
period as customers utilized multiple ways to purchase video game
products. Broken down by type, sales through GameStop’s mobile site
increased 47%, web-in-store and pick-up at store sales combined
increased by more than 120% and sales on www.gamestop.com increased
37%. During the holiday selling period, total site traffic ranked
in the top 20 of all online retailers.
Rob Lloyd, chief financial officer, commented, “Clearly, same
store sales were driven by very strong growth in new hardware. The
higher percentage of sales in the hardware category resulted in
better than expected comps, but lower gross margin dollars during
the holiday selling period. In addition, new software sales came in
below our expectations. Based on these results, GameStop now
expects its fourth quarter and full year 2013 same store sales to
be at the high end of the current guidance range and fourth quarter
earnings per share to be in a range of $1.85 to $1.95 and full year
earnings per share to be in a range of $2.96 to $3.06.”
Capital Allocation
Update
During the holiday period, GameStop repurchased 800,500 shares
of common stock at an average price of $49.39, or $39.5 million
worth of stock. As of the end of the holiday period, the company
had approximately $467.1 million remaining of its current share
repurchase authorization.
About GameStop
GameStop Corp. (NYSE: GME), a Fortune 500 and S&P 500
company headquartered in Grapevine, Texas, is the world's largest
multichannel video game retailer. GameStop's retail network and
family of brands include 6,488 company-operated stores in 15
countries worldwide and online at www.GameStop.com. The network
also includes: www.Kongregate.com, a leading browser-based game
site; Game Informer(R) magazine, the leading multi-platform video
game publication; Spawn Labs, a streaming technology company; and a
digital PC game distribution platform available at
www.GameStop.com/PC; and an online consumer electronics trade-in
platform available at www.BuyMyTronics.com.
General information on GameStop Corp. can be obtained at the
company's corporate website. Follow GameStop on Twitter @
www.twitter.com/GameStop and find GameStop on Facebook @
www.facebook.com/GameStop.
Safe Harbor
This press release 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 the fourth quarter and fiscal 2013, future financial
and operating results, projected store openings, 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 of video
game titles for consoles; consumer demand for next generation
consoles; the cyclical nature of the video game industry; the risks
associated with expanded international operations and the
integration of acquisitions; failure to achieve anticipated
benefits from new ventures and transactions; the impact of
increased competition and changing technology in the video game
industry, including browser and mobile games and alternative
methods of distribution; and economic, regulatory and other events,
including litigation, that could reduce or impact consumer demand
or affect the company’s 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 for the fiscal year ended Feb. 2, 2013 filed
with the SEC and available at the SEC's Internet site at
http://www.sec.gov or http://investor.GameStop.com.
Schedule I GameStop Corp. Sales Mix
9 Weeks Ended 9 Weeks Ended Jan. 4, 2014
Dec. 29, 2012 Percent Percent Sales
of Total Sales of Total Sales (in millions):
New video game hardware $ 1,048.2 33.3 % $ 524.5 18.2 % New
video game software 1,080.4 34.3 % 1,393.9 48.4 % Pre-owned video
game products 567.3 18.0 % 530.0 18.4 % Other 454.0 14.4 % 433.0
15.0 % Total $ 3,149.9 100.0 % $
2,881.4 100.0 %
Matt HodgesVP, Public & Investor RelationsGameStop
Corp.817-424-2130
GameStop (NYSE:GME)
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