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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Comments

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

Submitted by Grif on Thu, 08/18/2011 - 23:22.

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.

Atlanta Video Games Examiner for examiner.com

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quiknkold: ugh. I want to know why the hell Mozerella Sticks are 4 dollars at my works cafeteria...are they cooked in Truffle Oil?10/20/2014 - 10:41am

Neo_DrKefka: Anti-Gamergate supporter Robert Caruso attacks female GamerGate supporter by also attacking another cause she support which is the situation happening in Syia “LET SYRIANS SUFFER” https://archive.today/F14zZ https://archive.today/Wpz8S10/20/2014 - 10:18am

Neo_DrKefka: That is correct in an At-Will state you or the employer can part ways at any time. However Florida also has laws on the books about "Wrongful combinations against workers" http://www.flsenate.gov/Laws/Statutes/2012/448.04510/20/2014 - 10:07am

james_fudge: he'd die if he couldn't talk about Wii U :)10/20/2014 - 9:16am

Michael Chandra: By the way, I am not saying Andrew should stop talking about Wii-U. I find it quite nice. :)10/20/2014 - 8:53am

Michael Chandra: 'How dare he ignore my wishes and my advice! I am his boss! I could have ordered him but I should be able to say it's advice rather than ordering him directly!'10/20/2014 - 8:52am

Michael Chandra: If GP goes "EZK, do not talk about X publicly for a week, we're preparing a big article on it" and he still tweets about X, they'd have a legitimate reason to be pissed.10/20/2014 - 8:52am

Michael Chandra: If GP tells Andrew "we'd kinda prefer it if you stopped talking about Wii-U for 1 week" and he'd tweet about it anyway, firing him for it would be idiotic.10/20/2014 - 8:51am

Michael Chandra: Legal right, sure. But that doesn't make it any less pathetic of an excuse.10/20/2014 - 8:50am

ZippyDSMlee: You mean right to fire states.10/20/2014 - 8:50am

james_fudge: some states have "at will" employee laws10/20/2014 - 7:50am

quiknkold: It says in the article that being in florida, you can get fired regardless if its a fireable offence10/20/2014 - 7:19am

Michael Chandra: If your employee respectfully disagrees with your advice, that's not a fireable offense. If they ignore your order, THEN you have the right to be pissed.10/20/2014 - 6:49am

Michael Chandra: I... Don't get one thing. If you do not want your employee to do X, why do you tell them it's advice or a wish? Give them a damn order.10/20/2014 - 6:48am

james_fudge: A leak that had me worried about being swatted by Lizard Squad.10/20/2014 - 6:03am

james_fudge: It should be noted that the author leaked the GJP group names online10/20/2014 - 6:03am

MechaTama31: I mean, of the groups being bullied here, which of the two would you refer to collectively as "nerds"?10/19/2014 - 11:30pm

MechaTama31: But that's the thing, it doesn't sound to me like he is advocating bullying, it sounds like he is accusing the SJWs of bullying the "nerds", who I can only assume refers to the GGers.10/19/2014 - 11:21pm

Andrew Eisen: Interesting read. Unfortunately, too vague to form an opinion on but at least now I know what faefrost was talking about in James' editorial.10/19/2014 - 10:39pm

Neo_DrKefka: Breaking GameJournoPros organized a blacklist of former Destructoid writer Allistar Pinsof for investigating fraud in IndieGoGo campaign http://blogjob.com/oneangrygamer/2014/10/gamergate-destructoid-corruption-and-ruined-careers/10/19/2014 - 8:57pm

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