GameStop: Traditional Sales Down, Digital and Pre-Owned Sales Up

August 18, 2011 -

GameStop this week reported sales and earnings for the second quarter ended July 30, 2011. While store sales of traditional boxed software and hardware declined, the company found a silver lining with better-than-expected digital sales and pre-owned sales. Total sales for the second quarter of 2011 were $1.74 billion, a decrease of 3.1 percent compared to $1.80 billion in the prior year quarter. Total company comparable store sales were -9.1 percent, impacted by lower hardware sales and a lighter software title releases than the prior year quarter. While new hardware and software underperformed, pre-owned sales increased 12 percent and digital sales increased 69 percent, exceeding quarterly expectations.

The top five selling games during the quarter were L.A. Noire by Rockstar Games, NCAA Football 12 by Electronic Arts, inFAMOUS 2 by Sony, Brink by Bethesda Softworks, and Mortal Kombat by Warner Home Video Games.

Net earnings were $30.9 million compared to $40.3 million in the prior year quarter. GameStop continued spending on its strategic initiatives during the quarter. Diluted earnings per share were in-line with guidance at $0.22 compared to $0.26 in the prior year quarter. The strength of the pre-owned business and growth in digital channels led to gross margins of 31.2 percent, an increase of 250 basis points and the company’s highest margin rate in five years.

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Re: GameStop: Traditional Sales Down, Digital and Pre-Owned ...

Translation for those who think Gamestop is losing money: Instead of making $40.3 million, they made $30.9 million.

This, in fact, is NOT losing money. This IS, however, STILL making a fuckton of money.

 
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Andrew EisenI imagine will see similar promotions like "Buy Mario Kart 8 get a download code for one of these specific games" but almost certainly not for all of its (however you would define) biggest releases.07/31/2014 - 11:24am
MaskedPixelanteI wonder if Nintendo is going to be doing "buy one get one free" promos for all their biggest releases going forward.07/31/2014 - 10:48am
MaskedPixelantehttp://www.mcvuk.com/news/read/special-report-retail-revolt-over-pc-code-strippers/013614007/31/2014 - 8:27am
ZippyDSMleeWouldn't they be able to afford and get done in a timely manner a general gba emluator for the 3DS? It seems to me if they want to make money off sales they need to do it.07/31/2014 - 7:25am
Sora-ChanAmbassador program, that's what I was looking for. Anyway the other games that have been made no longer exclusive to the early adopters got updates in their software. It'll only be a matter of time more than likely for the GBA to get the same treatment.07/31/2014 - 5:35am
Sora-ChanI might be naming it incorrectly when I say "founder" i mean the program for earlier adopters.07/31/2014 - 5:34am
Sora-Chanthe 3DS's GBA emulator was a rush job due to the founder program. No other GBA titles have been released on the 3DS yet. If/When they do get around to it, they'll more than likely update the emulation software.07/31/2014 - 5:32am
Zenemulator...it's not just a slap job that makes "some" work..they do it for each which is why they work so well. I would rather have the quality over just a slap job.07/30/2014 - 5:48pm
ZenMatthew there is a difference between "worked" and "accurate". You play the Nintendo VC titles they play as damn close to the original as possible. The PSP would just run them as best they could, issues and all. And Masked...EACH VC title has their own07/30/2014 - 5:48pm
MaskedPixelanteOnce again, the 3DS already HAS a GBA emulator, it just can't run at the same time as the 3DS OS.07/30/2014 - 4:54pm
Matthew Wilsonyou cant street pass in ds mode ether, and if moders can make a gba emulator that runs very well on the psp as I understand it. you are telling me that Nintendo devs are not as good as moders?07/30/2014 - 4:49pm
Zenperformance. Halo 1 and 2 worked great because they actually did custom work on each of them...just like Nintendo does now lol07/30/2014 - 4:08pm
Zenexisting hardware while the GBA has to be emulated completely. Same reason the 360 couldn't run most Original Xbox games correctly, or had issues because they just did "blanket approach" for their emulation which led to game killing bugs or horrible07/30/2014 - 4:07pm
ZenSora/Matthew: It's not just Miiverse, but the whole idea of streetpass and things like that would be affected if the OS is not running. And just because a 3DS game can be downloaded and run does not mean that GBA can as easily. Those 3DS games use the07/30/2014 - 4:06pm
E. Zachary KnightSleaker, How is that different from every other credit card company targeting high school and college students?07/30/2014 - 1:40pm
Sleaker@EZK - I think some people are concerned beacuse it's a predatory technique targetted toward younger people that don't understand on top of offering the worst interest rates of any retailer around.07/30/2014 - 11:33am
MaskedPixelantehttp://www.joystiq.com/2014/07/30/europe-gets-long-detained-shin-megami-tensei-4-at-cut-price/ "Sorry you had to wait a year for SMT4, would a price cut make it sting less?"07/30/2014 - 10:29am
NeenekoI would hope not. Though it is not unheard of for store specific cards to be pretty good.07/30/2014 - 8:17am
E. Zachary KnightDoes anyone, or at least any intelligent person, expect a retail branded credit card to be anything close to resembling a "good deal" on interest rates?07/30/2014 - 7:13am
SleakerGamestop articles popping up everywhere about their ludicrous new Credit card offerings at a whopping pre-approval for 26.9% APR07/29/2014 - 10:19pm
 

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