Global Same Store Sales Increase 12.2% for the
Quarter and 5.8% for the Year Hardware Sales Increase 44.8%
for the Quarter and 28.3% for the Year Collectibles Sales
Increase 22.8% for the Quarter and 28.8% for the Year
GameStop Corp. (NYSE:GME), today reported sales
and earnings for the fourth quarter and fiscal year ended February
3, 2018. As a reminder, the fourth quarter of fiscal 2017
contained 14 weeks of operating results compared to 13 weeks in
fiscal 2016 and fiscal 2017 contained 53 weeks of operating results
compared to 52 weeks in fiscal 2016. Same store sales
comparisons for the fiscal quarter and fiscal year are based on the
most closely comparable weeks for the 14 week and 53 week periods.
Mike Mauler, chief executive officer, stated,
“Our fourth quarter performance continued to demonstrate that
GameStop is the preferred destination for the gaming and
collectibles customer. Our strong sales performance over the
holiday period and throughout the fourth quarter was driven by
compelling Black Friday and holiday promotions, driving growth in
hardware, particularly the Nintendo Switch. Our industry
leading position enabled us to provide customers with the best
selection of consoles and games for the best price, in turn
increasing our market share for the quarter. Our collectibles
business also continued to deliver robust growth, further
demonstrating that the business will be an accelerating contributor
to GameStop’s profitability.”
Mr. Mauler continued, “While we had a solid
performance in 2017, there are still many areas to improve that
will drive future profitability. We have three core
profitable businesses; Video Games, Collectibles, and Technology
Brands. Moving forward over the next year, we plan to pause
on investing in additional new businesses or acquisitions and focus
on the fundamentals of improving the businesses that we already
have. I believe focusing on the basics of retail
operational excellence across the organization will maximize our
free cash flow, improve our performance and, ultimately, deliver
returns for our shareholders.”
Fourth Quarter ResultsTotal
global sales increased 15.0% to $3.50 billion (12.3% in
constant currency), resulting in consolidated comparable store
sales growth of 12.2% (+14.2% in the U.S. and +8.3%
internationally). New hardware sales increased 44.8%, led by
demand for Nintendo Switch, and new software sales increased 12.4%
driven by a strong title lineup. Consistent with the
company’s expectations, pre-owned sales declined 2.6%.
Worldwide omnichannel sales increased by 24.8% on the strength of
new hardware sales.
Digital sales and non-GAAP digital receipts
increased 41.0% and 16.1%, respectively, excluding the fourth
quarter 2016 revenues from Kongregate which was sold in July 2017.
On a reported basis, digital sales increased 7.3% to $61.4
million, while non-GAAP digital receipts increased 10.6% to $413.0
million.
Collectibles sales increased 22.8% to $260.8
million, driven by continued expansion of licensed merchandise
offerings and targeted promotions during the holiday period.
Technology Brands sales decreased 14.2% to
$219.7 million, driven primarily by the previously disclosed change
in AT&T’s dealer compensation structure. Technology
Brands GAAP operating loss was ($359.8) million due to $390.9
million ($258.5 million net of taxes) in asset impairment and other
charges. Technology Brands operating earnings, excluding
impairment and other charges, were $31.1 million, an 8.5% decrease
compared to $34.0 million in the prior-year quarter.
GameStop’s fourth quarter GAAP net income (loss)
was ($105.9) million, or ($1.04) per diluted share, compared to net
income of $208.7 million, or $2.04 per diluted share in the
prior-year quarter. The fourth quarter results include asset
impairment and other charges of $406.5 million ($310.9 million net
of taxes), or $3.06 per diluted share, primarily non-cash and
related to the Technology Brands business. The positive
impact of tax reform legislation was $3.0 million, or $0.03 per
diluted share.
Excluding asset impairment and other charges and
related tax adjustments, GameStop's adjusted net income for the
fourth quarter was $205.0 million, compared to adjusted net income
of $243.8 million in the prior-year quarter. Adjusted earnings per
diluted share were $2.02 compared to adjusted earnings per diluted
share of $2.38 in the prior-year quarter.
A reconciliation of non-GAAP results, including
adjusted net income, operating earnings, Technology Brands
operating earnings and free cash flow, to its closest GAAP measure
is included with this release (Schedule III and IV).
Fiscal 2017 ResultsTotal global
sales increased 7.2% to $9.2 billion, while consolidated comparable
store sales increased 5.8% (4.3% in the U.S. and 9.2%
internationally).
Key takeaways for fiscal 2017 include:
- New hardware sales increased 28.3%, led by demand for Nintendo
Switch.
- Collectibles sales increased 28.8% to $636.2 million on
strength in unique and exclusive product offerings.
- Digital sales and non-GAAP digital receipts increased 13.8% and
7.1%, respectively, excluding 2016 revenues from Kongregate which
was sold in July 2017. Reported digital sales increased 4.5%
to $189.2 million, while non-GAAP digital receipts increased 5.2%
to $1.2 billion.
- New software sales increased 3.6%.
- Pre-owned sales declined 4.6%, consistent with the company’s
expectations at the beginning of the year.
- Generated free cash flow of $324.7 million.
GameStop's fiscal 2017 GAAP net income was $34.7
million, or $0.34 per diluted share. The fiscal 2017 GAAP
results include asset impairment and other charges of $399.7
million ($303.9 million net of taxes), or $3.00 per diluted share,
primarily non-cash and related to the Technology Brands
business. The positive impact of tax reform legislation was
$3.0 million, or $0.03 per diluted share. This compared to
net income of $353.2 million, or $3.40 per diluted share in fiscal
2016.
Excluding asset impairment and other charges and
tax related adjustments, GameStop's adjusted net income for fiscal
2017 was $338.6 million, compared to adjusted net income of $390.9
million in fiscal 2016. Adjusted earnings per diluted share were
$3.34 compared to adjusted earnings per diluted share of $3.77 in
the prior fiscal year.
A reconciliation of non-GAAP results, including
adjusted net income, operating earnings, Technology Brands
operating earnings and free cash flow, to its closest GAAP measure
is included with this release (Schedule III and IV).
Capital Allocation UpdateOn
February 21, 2018, GameStop announced that its Board of Directors
declared a quarterly cash dividend of $0.38 per common share that
was paid on March 20, 2018 to shareholders of record at the close
of business on March 5, 2018.
2018 GuidanceGameStop is
providing the following guidance for fiscal 2018 with expectations
for earnings to be substantially back half weighted for the fiscal
year given the overlap of the Nintendo Switch launch in the first
half of the year and expected strength of the title line up in the
second half of the year.
Total
Sales |
-2.0% to
-6.0% |
|
|
Comparable Store Sales (excludes Tech Brands stores) |
Flat to
-5% |
|
|
Income
Tax Rate |
26.0% to
27.0% |
|
|
Adjusted
(Non-GAAP) Earnings Per Share (diluted) |
$3.00 to
$3.35* |
|
|
Capital
Expenditures |
$110.0
million to $120.0 million |
Earnings per share guidance is calculated based on weighted
average shares outstanding of 101.5 million. * A
reconciliation of non-GAAP forward-looking projections to GAAP
financial measures is not available as the nature or amount of
potential adjustments, which may be significant, cannot be
determined at this time.
Conference Call
Information A conference call with GameStop
Corp.’s management is scheduled for March 28, 2018 at 5:00 p.m. ET
to discuss the company’s financial results. The phone number for
the call is 800-281-7973 and the passcode is 8634503. 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
GameStop GameStop Corp., a Fortune 500 company
headquartered in Grapevine, Texas, is a global, multichannel video
game, consumer electronics and wireless services retailer. GameStop
operates over 7,200 stores across 14 countries. The company's
consumer product network also includes www.gamestop.com; 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 nearly 1,400 Spring Mobile AT&T and Simply Mac
stores. Spring Mobile, www.springmobile.com, sells all of
AT&T’s products and services, including DIRECTV, devices and
related accessories in select markets in the U.S. 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.
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 Measures As
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. We
believe these non-GAAP financial measures provide useful
information to investors in evaluating our core operating
performance. Adjusted operating earnings and adjusted net income
exclude the effect of items such as asset impairments, store
closure costs, severance, as well as acquisition and divestiture
costs. We define free cash flow as cash flow provided by
operating activities less purchases for property and equipment plus
cash flows from other investing activities, which primarily relate
to tenant allowances. 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 non-GAAP measures 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
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are based upon management’s current beliefs, views,
estimates and expectations, including as to the Company’s industry,
business strategy, goals and expectations concerning its market
position, future operations, margins, profitability, capital
expenditures, liquidity and capital resources and other financial
and operating information. Such statements include without
limitation those about the Company’s outlook for fiscal 2018,
future financial and operating results, projections, expectations
and other statements that are not historical facts. Forward-looking
statements are subject to significant risks and uncertainties and
actual results may differ materially from those reflected or
described in the forward-looking statements. The following factors,
among others, could cause actual results to differ from those
reflected or described in the forward-looking statements: our
inability to obtain sufficient quantities of product to meet
consumer demand; the timing of release and consumer demand for new
and pre-owned products; our ability to continue to expand, and
successfully open and operate new stores for our collectibles and
technology 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 impact of goodwill and intangible asset impairments; cost
reduction initiatives, including store closing costs; risks related
to changes in, and our continued retention of, executive officers
and other key personnel; changes in consumer preferences and
economic conditions; increased operating costs, including wages;
cyber security events and related costs; risks associated with
international operations; changes to our wireless industry
partnerships and operations; increased competition and changing
technology in the video game industry; 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; our effective tax rate and the factors affecting our
effective tax rate, including changes in international, federal or
state tax, trade and other laws and regulations; the costs and
outcomes of legal proceedings and tax audits. Additional factors
that could cause our results to differ materially from those
reflected or described in the forward-looking statements can be
found in GameStop's Annual Report on Form 10-K for the fiscal year
ended January 28, 2017 filed with the SEC and available at the
SEC's Internet site at http://www.sec.gov or
http://investor.GameStop.com. Forward-looking statements contained
in this press release speak only as of the date of this release.
The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by any
applicable securities laws.
GameStop Corp.Condensed
Consolidated Statements of Operations(in millions,
except per share data)(unaudited)
|
|
14 Weeks EndedFebruary 3,
2018 |
|
13 Weeks EndedJanuary 28,
2017 |
Net sales |
|
$ |
3,502.5 |
|
|
$ |
3,045.4 |
|
Cost of sales |
|
2,478.0 |
|
|
2,037.5 |
|
Gross
profit |
|
1,024.5 |
|
|
1,007.9 |
|
Selling, general and
administrative expenses |
|
692.0 |
|
|
646.3 |
|
Depreciation and
amortization |
|
38.4 |
|
|
41.2 |
|
Goodwill
impairments |
|
32.8 |
|
|
— |
|
Asset impairments |
|
358.0 |
|
|
33.8 |
|
Operating
(loss) earnings |
|
(96.7 |
) |
|
286.6 |
|
Interest expense,
net |
|
13.1 |
|
|
13.8 |
|
(Loss)
earnings before income tax expense |
|
(109.8 |
) |
|
272.8 |
|
Income tax (benefit)
expense |
|
(3.9 |
) |
|
64.1 |
|
Net
(loss) income |
|
$ |
(105.9 |
) |
|
$ |
208.7 |
|
|
|
|
|
|
Net (loss) income per
common share: |
|
|
|
|
Basic |
|
$ |
(1.04 |
) |
|
$ |
2.04 |
|
Diluted |
|
$ |
(1.04 |
) |
|
$ |
2.04 |
|
|
|
|
|
|
Dividends per common
share |
|
$ |
0.38 |
|
|
$ |
0.37 |
|
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
Basic |
|
101.5 |
|
|
102.1 |
|
Diluted |
|
101.6 |
|
|
102.5 |
|
|
|
|
|
|
Percentage of Net
Sales: |
|
|
|
|
Net sales |
|
100.0 |
% |
|
100.0 |
% |
Cost of sales |
|
70.7 |
% |
|
66.9 |
% |
Gross
profit |
|
29.3 |
% |
|
33.1 |
% |
Selling, general and
administrative expenses |
|
19.8 |
% |
|
21.2 |
% |
Depreciation and
amortization |
|
1.1 |
% |
|
1.4 |
% |
Goodwill
impairments |
|
0.9 |
% |
|
— |
% |
Asset impairments |
|
10.3 |
% |
|
1.1 |
% |
Operating
(loss) earnings |
|
(2.8 |
)% |
|
9.4 |
% |
Interest expense,
net |
|
0.3 |
% |
|
0.4 |
% |
(Loss)
earnings before income tax expense |
|
(3.1 |
)% |
|
9.0 |
% |
Income tax (benefit)
expense |
|
(0.1 |
)% |
|
2.1 |
% |
Net
(loss) income |
|
(3.0 |
)% |
|
6.9 |
% |
|
GameStop Corp.Condensed
Consolidated Statements of Operations(in millions,
except per share data)(unaudited)
|
|
53 weeks ended February 3, 2018 |
|
52 weeks ended January 28, 2017 |
Net sales |
|
$ |
9,224.6 |
|
|
$ |
8,607.9 |
|
Cost of sales |
|
6,184.5 |
|
|
5,598.6 |
|
Gross
profit |
|
3,040.1 |
|
|
3,009.3 |
|
Selling, general and
administrative expenses |
|
2,363.0 |
|
|
2,252.6 |
|
Depreciation and
amortization |
|
150.7 |
|
|
165.2 |
|
Goodwill
impairments |
|
32.8 |
|
|
— |
|
Asset impairments |
|
358.0 |
|
|
33.8 |
|
Operating
earnings |
|
135.6 |
|
|
557.7 |
|
Interest expense,
net |
|
55.3 |
|
|
53.0 |
|
Earnings
before income tax expense |
|
80.3 |
|
|
504.7 |
|
Income tax expense |
|
45.6 |
|
|
151.5 |
|
Net
income |
|
$ |
34.7 |
|
|
$ |
353.2 |
|
|
|
|
|
|
Net income per common
share: |
|
|
|
|
Basic |
|
$ |
0.34 |
|
|
$ |
3.42 |
|
Diluted |
|
$ |
0.34 |
|
|
$ |
3.40 |
|
|
|
|
|
|
Dividends per common
share |
|
$ |
1.52 |
|
|
$ |
1.48 |
|
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
Basic |
|
101.4 |
|
|
103.4 |
|
Diluted |
|
101.5 |
|
|
103.8 |
|
|
|
|
|
|
|
|
|
|
|
Percentage of Net
Sales: |
|
|
|
|
|
|
|
|
|
Net sales |
|
100.0 |
% |
|
100.0 |
% |
Cost of sales |
|
67.0 |
% |
|
65.0 |
% |
Gross
profit |
|
33.0 |
% |
|
35.0 |
% |
Selling, general and
administrative expenses |
|
25.6 |
% |
|
26.2 |
% |
Depreciation and
amortization |
|
1.6 |
% |
|
1.9 |
% |
Goodwill
impairments |
|
0.4 |
% |
|
— |
% |
Asset impairments |
|
3.9 |
% |
|
0.4 |
% |
Operating
earnings |
|
1.5 |
% |
|
6.5 |
% |
Interest expense,
net |
|
0.6 |
% |
|
0.6 |
% |
Earnings
before income tax expense |
|
0.9 |
% |
|
5.9 |
% |
Income tax expense |
|
0.5 |
% |
|
1.8 |
% |
Net
income |
|
0.4 |
% |
|
4.1 |
% |
|
GameStop Corp.Condensed
Consolidated Balance Sheets(in
millions)(unaudited)
|
|
February 3, 2018 |
|
January 28, 2017 |
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
864.4 |
|
|
$ |
669.4 |
|
Receivables, net |
|
182.7 |
|
|
220.9 |
|
Merchandise inventories, net |
|
1,366.7 |
|
|
1,121.5 |
|
Prepaid
expenses and other current assets |
|
124.9 |
|
|
128.9 |
|
Total
current assets |
|
2,538.7 |
|
|
2,140.7 |
|
Property and
equipment: |
|
|
|
|
Land |
|
19.9 |
|
|
18.6 |
|
Buildings
and leasehold improvements |
|
769.8 |
|
|
724.5 |
|
Fixtures
and equipment |
|
973.5 |
|
|
931.4 |
|
Total
property and equipment |
|
1,763.2 |
|
|
1,674.5 |
|
Less
accumulated depreciation |
|
1,330.0 |
|
|
1,203.5 |
|
Net
property and equipment |
|
433.2 |
|
|
471.0 |
|
Goodwill |
|
1,667.3 |
|
|
1,725.2 |
|
Other noncurrent
assets |
|
402.4 |
|
|
639.0 |
|
Total
assets |
|
$ |
5,041.6 |
|
|
$ |
4,975.9 |
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
902.0 |
|
|
$ |
616.6 |
|
Accrued
liabilities |
|
976.1 |
|
|
1,090.9 |
|
Income
taxes payable |
|
37.5 |
|
|
54.0 |
|
Total
current liabilities |
|
1,915.6 |
|
|
1,761.5 |
|
Other long-term
liabilities |
|
93.6 |
|
|
145.3 |
|
Long-term debt,
net |
|
817.9 |
|
|
815.0 |
|
Total
liabilities |
|
2,827.1 |
|
|
2,721.8 |
|
Stockholders’
equity |
|
2,214.5 |
|
|
2,254.1 |
|
Total liabilities and
stockholders’ equity |
|
$ |
5,041.6 |
|
|
$ |
4,975.9 |
|
|
GameStop Corp.Condensed
Consolidated Statements of Cash Flows(in
millions)(unaudited)
|
|
53 weeks ended February 3, 2018 |
|
52 weeks ended January 28, 2017 |
Cash flows from
operating activities: |
|
|
|
|
Net
income |
|
$ |
34.7 |
|
|
$ |
353.2 |
|
Adjustments to reconcile net income to net cash flows provided by
operating activities: |
|
|
|
|
Depreciation and amortization (including amounts in cost of
sales) |
|
151.9 |
|
|
166.7 |
|
Goodwill
and asset impairments |
|
395.1 |
|
|
33.8 |
|
Stock-based compensation expense |
|
25.6 |
|
|
17.8 |
|
Deferred
income taxes |
|
(107.9 |
) |
|
(37.2 |
) |
Excess
tax benefits related to stock-based awards |
|
— |
|
|
0.8 |
|
Loss on
disposal of property and equipment |
|
8.5 |
|
|
10.4 |
|
Gain on
divestiture |
|
(6.4 |
) |
|
— |
|
Other |
|
24.9 |
|
|
15.5 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
Receivables, net |
|
35.7 |
|
|
(43.9 |
) |
Merchandise inventories |
|
(256.3 |
) |
|
14.7 |
|
Prepaid
expenses and other current assets |
|
(1.2 |
) |
|
(11.4 |
) |
Prepaid
income taxes and income taxes payable |
|
(24.7 |
) |
|
(49.1 |
) |
Accounts
payable and accrued liabilities |
|
169.8 |
|
|
64.1 |
|
Changes
in other long-term liabilities |
|
(14.8 |
) |
|
1.7 |
|
Net cash
flows provided by operating activities |
|
434.9 |
|
|
537.1 |
|
Cash flows from
investing activities: |
|
|
|
|
Purchase
of property and equipment |
|
(113.4 |
) |
|
(142.7 |
) |
Acquisitions, net of cash acquired of $0.0 and $0.1,
respectively |
|
(8.5 |
) |
|
(441.2 |
) |
Proceeds
from divestiture |
|
55.0 |
|
|
— |
|
Other |
|
3.2 |
|
|
5.9 |
|
Net cash
flows used in investing activities |
|
(63.7 |
) |
|
(578.0 |
) |
Cash flows from
financing activities: |
|
|
|
|
Repayment
of acquisition-related debt |
|
(21.8 |
) |
|
(0.4 |
) |
Repurchase of common shares |
|
(22.0 |
) |
|
(63.1 |
) |
Dividends
paid |
|
(155.2 |
) |
|
(155.5 |
) |
Proceeds
from senior notes |
|
— |
|
|
475.0 |
|
Borrowings from the revolver |
|
373.0 |
|
|
545.0 |
|
Repayments of revolver borrowings |
|
(373.0 |
) |
|
(545.0 |
) |
Payments
of financing costs |
|
— |
|
|
(8.1 |
) |
Issuance
of common stock, net of share repurchases for withholding
taxes |
|
(3.5 |
) |
|
(8.4 |
) |
Excess
tax benefits related to stock-based awards |
|
— |
|
|
(0.8 |
) |
Net cash
flows (used in) provided by financing activities |
|
(202.5 |
) |
|
238.7 |
|
Exchange
rate effect on cash and cash equivalents |
|
26.3 |
|
|
21.2 |
|
Increase
in cash and cash equivalents |
|
195.0 |
|
|
219.0 |
|
Cash and cash
equivalents at beginning of period |
|
669.4 |
|
|
450.4 |
|
Cash and cash
equivalents at end of period |
|
$ |
864.4 |
|
|
$ |
669.4 |
|
|
GameStop Corp.Schedule
ISales
Mix(unaudited)
|
|
14 Weeks EndedFebruary 3,
2018 |
|
13 Weeks EndedJanuary 28,
2017 |
Net Sales (in
millions): |
|
NetSales |
|
Percentof Total |
|
Net Sales |
|
Percent of Total |
|
|
|
|
|
|
|
|
|
New video game
hardware |
|
$ |
844.0 |
|
|
24.1 |
% |
|
$ |
583.0 |
|
|
19.1 |
% |
New video game
software |
|
1,042.3 |
|
|
29.8 |
% |
|
927.4 |
|
|
30.5 |
% |
Pre-owned and value
video game products |
|
663.1 |
|
|
18.9 |
% |
|
680.6 |
|
|
22.3 |
% |
Video game
accessories |
|
327.7 |
|
|
9.4 |
% |
|
238.5 |
|
|
7.8 |
% |
Digital |
|
61.4 |
|
|
1.8 |
% |
|
57.2 |
|
|
1.9 |
% |
Technology Brands |
|
219.7 |
|
|
6.3 |
% |
|
256.0 |
|
|
8.4 |
% |
Collectibles |
|
260.8 |
|
|
7.4 |
% |
|
212.4 |
|
|
7.0 |
% |
Other |
|
83.5 |
|
|
2.3 |
% |
|
90.3 |
|
|
3.0 |
% |
Total |
|
$ |
3,502.5 |
|
|
100.0 |
% |
|
$ |
3,045.4 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
53 Weeks EndedFebruary 3,
2018 |
|
52 Weeks EndedJanuary 28,
2017 |
Net Sales (in
millions): |
|
Net Sales |
|
Percent of Total |
|
Net Sales |
|
Percent of Total |
|
|
|
|
|
|
|
|
|
New video game
hardware |
|
$ |
1,791.8 |
|
|
19.4 |
% |
|
$ |
1,396.7 |
|
|
16.2 |
% |
New video game
software |
|
2,582.0 |
|
|
28.0 |
% |
|
2,493.4 |
|
|
29.0 |
% |
Pre-owned and value
video game products |
|
2,149.6 |
|
|
23.3 |
% |
|
2,254.1 |
|
|
26.2 |
% |
Video game
accessories |
|
784.3 |
|
|
8.5 |
% |
|
676.7 |
|
|
7.9 |
% |
Digital |
|
189.2 |
|
|
2.1 |
% |
|
181.0 |
|
|
2.1 |
% |
Technology Brands |
|
803.6 |
|
|
8.7 |
% |
|
814.0 |
|
|
9.5 |
% |
Collectibles |
|
636.2 |
|
|
6.9 |
% |
|
494.1 |
|
|
5.7 |
% |
Other |
|
287.9 |
|
|
3.1 |
% |
|
297.9 |
|
|
3.4 |
% |
Total |
|
$ |
9,224.6 |
|
|
100.0 |
% |
|
$ |
8,607.9 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule IIGross Profit
Mix(unaudited)
|
|
14 Weeks EndedFebruary 3,
2018 |
|
13 Weeks EndedJanuary 28,
2017 |
Gross Profit (in
millions): |
|
GrossProfit |
|
GrossProfitPercent |
|
Gross Profit |
|
Gross Profit Percent |
|
|
|
|
|
|
|
|
|
New video game
hardware |
|
$ |
61.5 |
|
|
7.3 |
% |
|
$ |
58.6 |
|
|
10.1 |
% |
New video game
software |
|
238.9 |
|
|
22.9 |
% |
|
224.4 |
|
|
24.2 |
% |
Pre-owned and value
video game products |
|
298.1 |
|
|
45.0 |
% |
|
318.9 |
|
|
46.9 |
% |
Video game
accessories |
|
102.9 |
|
|
31.4 |
% |
|
82.8 |
|
|
34.7 |
% |
Digital |
|
54.3 |
|
|
88.4 |
% |
|
50.8 |
|
|
88.8 |
% |
Technology Brands |
|
169.1 |
|
|
77.0 |
% |
|
174.6 |
|
|
68.2 |
% |
Collectibles |
|
77.1 |
|
|
29.6 |
% |
|
68.6 |
|
|
32.3 |
% |
Other |
|
22.6 |
|
|
27.1 |
% |
|
29.2 |
|
|
32.3 |
% |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
1,024.5 |
|
|
29.3 |
% |
|
$ |
1,007.9 |
|
|
33.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
53 Weeks EndedFebruary 3,
2018 |
|
52 Weeks EndedJanuary 28,
2017 |
Gross Profit (in
millions): |
|
Gross Profit |
|
Gross Profit Percent |
|
Gross Profit |
|
Gross Profit Percent |
|
|
|
|
|
|
|
|
|
New video game
hardware |
|
$ |
163.1 |
|
|
9.1 |
% |
|
$ |
154.2 |
|
|
11.0 |
% |
New video game
software |
|
590.3 |
|
|
22.9 |
% |
|
600.4 |
|
|
24.1 |
% |
Pre-owned and value
video game products |
|
977.1 |
|
|
45.5 |
% |
|
1,044.1 |
|
|
46.3 |
% |
Video game
accessories |
|
255.0 |
|
|
32.5 |
% |
|
235.2 |
|
|
34.8 |
% |
Digital |
|
162.4 |
|
|
85.8 |
% |
|
155.5 |
|
|
85.9 |
% |
Technology Brands |
|
594.0 |
|
|
73.9 |
% |
|
554.6 |
|
|
68.1 |
% |
Collectibles |
|
208.2 |
|
|
32.7 |
% |
|
171.6 |
|
|
34.7 |
% |
Other |
|
90.0 |
|
|
31.3 |
% |
|
93.7 |
|
|
31.5 |
% |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
3,040.1 |
|
|
33.0 |
% |
|
$ |
3,009.3 |
|
|
35.0 |
% |
|
GameStop Corp.Schedule
III(in
millions)(unaudited)
Non-GAAP resultsThe 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.
|
|
14 Weeks EndedFebruary 3,
2018 |
|
13 Weeks EndedJanuary 28,
2017 |
|
53 Weeks EndedFebruary 3,
2018 |
|
52 Weeks EndedJanuary 28,
2017 |
Technology
Brands Adjusted Operating Earnings |
|
|
|
|
|
|
|
|
Technology Brands
operating (loss) earnings |
|
$ |
(359.8 |
) |
|
$ |
(12.0 |
) |
|
$ |
(315.7 |
) |
|
$ |
44.2 |
|
Acquisition costs |
|
(5.0 |
) |
|
— |
|
|
(10.7 |
) |
|
— |
|
Property,
equipment & other asset impairments |
|
15.5 |
|
|
16.6 |
|
|
15.5 |
|
|
16.6 |
|
Goodwill
impairment |
|
32.8 |
|
|
— |
|
|
32.8 |
|
|
— |
|
Intangible impairments |
|
339.8 |
|
|
7.0 |
|
|
339.8 |
|
|
7.0 |
|
Store
closure costs |
|
7.8 |
|
|
19.8 |
|
|
14.0 |
|
|
19.8 |
|
Business
divestitures and other |
|
— |
|
|
2.6 |
|
|
— |
|
|
2.6 |
|
Technology Brands
adjusted operating earnings |
|
$ |
31.1 |
|
|
$ |
34.0 |
|
|
$ |
75.7 |
|
|
$ |
90.2 |
|
|
|
|
|
|
|
|
|
|
Consolidated
Adjusted Operating Earnings |
|
|
|
|
|
|
|
|
Operating (loss)
earnings |
|
$ |
(96.7 |
) |
|
$ |
286.6 |
|
|
$ |
135.6 |
|
|
$ |
557.7 |
|
Acquisition costs |
|
(5.0 |
) |
|
— |
|
|
(10.7 |
) |
|
— |
|
Property,
equipment & other asset impairments |
|
22.5 |
|
|
19.4 |
|
|
22.5 |
|
|
19.4 |
|
Goodwill
impairments |
|
32.8 |
|
|
— |
|
|
32.8 |
|
|
— |
|
Intangible impairments |
|
339.8 |
|
|
14.4 |
|
|
339.8 |
|
|
14.4 |
|
Store
closure costs |
|
7.8 |
|
|
19.8 |
|
|
14.0 |
|
|
19.8 |
|
Business
divestitures and other |
|
8.6 |
|
|
2.9 |
|
|
1.3 |
|
|
7.0 |
|
Adjusted operating
earnings |
|
$ |
309.8 |
|
|
$ |
343.1 |
|
|
$ |
535.3 |
|
|
$ |
618.3 |
|
|
|
|
|
|
|
|
|
|
Consolidated
Adjusted Net Income |
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(105.9 |
) |
|
$ |
208.7 |
|
|
$ |
34.7 |
|
|
$ |
353.2 |
|
Acquisition costs |
|
(5.0 |
) |
|
— |
|
|
(10.7 |
) |
|
— |
|
Property,
equipment & other asset impairments |
|
22.5 |
|
|
19.4 |
|
|
22.5 |
|
|
19.4 |
|
Goodwill
impairment |
|
32.8 |
|
|
— |
|
|
32.8 |
|
|
— |
|
Intangible impairments |
|
339.8 |
|
|
14.4 |
|
|
339.8 |
|
|
14.4 |
|
Store
closure costs |
|
7.8 |
|
|
19.8 |
|
|
14.0 |
|
|
19.8 |
|
Business
divestitures and other |
|
8.6 |
|
|
2.9 |
|
|
1.3 |
|
|
7.0 |
|
Tax
effect of non-GAAP adjustments |
|
(92.6 |
) |
|
(21.4 |
) |
|
(92.8 |
) |
|
(22.9 |
) |
Tax
reform |
|
(3.0 |
) |
|
— |
|
|
(3.0 |
) |
|
— |
|
Adjusted net
income |
|
$ |
205.0 |
|
|
$ |
243.8 |
|
|
$ |
338.6 |
|
|
$ |
390.9 |
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.02 |
|
|
$ |
2.39 |
|
|
$ |
3.34 |
|
|
$ |
3.78 |
|
Diluted |
|
$ |
2.02 |
|
|
$ |
2.38 |
|
|
$ |
3.34 |
|
|
$ |
3.77 |
|
|
|
|
|
|
|
|
|
|
Dividend per common
share |
|
$ |
0.38 |
|
|
$ |
0.37 |
|
|
$ |
1.52 |
|
|
$ |
1.48 |
|
|
|
|
|
|
|
|
|
|
Number of shares used
in adjusted calculation |
|
|
|
|
|
|
|
|
Basic |
|
101.5 |
|
|
102.1 |
|
|
101.4 |
|
|
103.4 |
|
Diluted |
|
101.6 |
|
|
102.5 |
|
|
101.5 |
|
|
103.8 |
|
|
GameStop Corp.Schedule
IV(in
millions)(unaudited)
Non-GAAP resultsThe following table reconciles
the Company's cash flows provided by operating activities as
presented in its unaudited Consolidated Statements of Cash Flows
and prepared in accordance with GAAP to its free cash flow.
|
|
53 weeks ended February 3, 2018 |
|
52 weeks ended January 28, 2017 |
Net cash flows provided
by operating activities |
|
$ |
434.9 |
|
|
$ |
537.1 |
|
Purchase
of property and equipment |
|
(113.4 |
) |
|
(142.7 |
) |
Other
investing activities |
|
3.2 |
|
|
5.9 |
|
Free cash flow |
|
$ |
324.7 |
|
|
$ |
400.3 |
|
Contact
Mike Loftus
Vice President, Global Controller and Investor Relations
GameStop Corp.
investorrelations@gamestop.com
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