GameStop Corp (NYSE:GME) an international group of specialty retail brands that prompts the most popular technologies to become simple and affordable, posted sales figures for the nine-week holiday period closed December 30, 2017.
The buzz
Total international sales for the holiday period came at $2.77 billion, a jump of 10.6% over the 2016 holiday period. GameStop reported that total comparable store sales surged 11.8%, rising 13.7% in the United States and 7.9% globally. Global omnichannel sales jumped 21.5%. Dan DeMatteo, the Interim CEO, expressed that they are delighted with their sales performance during the notable holiday period, led by strength in the Xbox One X and Nintendo Switch, and a solid jump in their collectibles business. Their results exhibit their consumers’ enthusiastic response to latest products and their ability to follow on strategically targeted promotions.
GameStop reported that new hardware sales jumped 38.3%, led by sustained robust demand for the Nintendo Switch. It was also supported by the release of Microsoft’s Xbox One X. Moreover, sales of latest video game software jumped 7.3%, mainly attributed to the performance of Activision’s Call of Duty – WWII and sustained performance in Nintendo Switch titles. However, pre-owned sales dropped 8.1%, as clients shifted their spending to interesting new collectibles products and video game. Sales of video game accessories grew 33.7%, mainly linked to strong demand for Nintendo Switch accessories.
GameStop reported that collectibles sales jumped 19.4% to $211.3 million, led by robust performance across toys and apparel. Non-GAAP digital receipts and digital sales increased 6.7% and 36.7%, respectively, discounting the 2016 holiday period sales from Kongregate. Technology Brands sales decreased 18.6%. GameStop projects to deliver adjusted EPS close to the midpoint of its previously reported FY2017 projection of $3.10 to $3.40. The firm also projects FY2017 comparable store sales to surge between 4% and 6% compared to the previous 53-week period.
