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Nintendo Switch, Xbox One X, And Call Of Duty: WW2 Help GameStop Have Strong Quarter
Following the news that GameStop CEO Paul Raines had stepped aside due to the reoccurrence of a health issue, the video game store reported earnings for its third quarter ended October 28. Total sales rose 1.5 percent to $1.99 billion, while profit was $59.4 million, as compared to $50.8 million during the same period last year.
Hardware sales at GameStop for the quarter rose by 8.8 percent, driven by demand for the Nintendo Switch. Management said it expects demand to continue to outpace supply for the hybrid console this holiday, adding that it's working closely with Nintendo to get more units in stores. The Xbox One X launch was also a bright spot, GameStop said, noting that it sold through its "market-leading" allocation right away.
Game sales also rose during the quarter, by 5.4 percent, thanks to a "strong title lineup," GameStop said. The retailer added that Call of Duty: WWII sales are up by a massive 64 percent compared to Call of Duty: Infinite Warfare last year on a dollar basis. Separately, Activision announced that Call of Duty: WWII sales doubled those of Infinite Warfare's over its first 10 days, so growth at individual retailers like GameStop is to be expected.
GameStop's digital sales were also a bright spot, rising 11.9 percent; this does not include revenue from Kongregate, the mobile/social game developer that it sold in July. The company's Collectibles business grew by the largest margin, rising 26.5 percent, thanks in part to the "continued expansion of licensed merchandise" in the US and abroad. For the full fiscal year, GameStop said its Collectibles business remains on track to amount to as much as $700 million.
Some soft spots for GameStop in the quarter included the pre-owned business, which saw its sales decline 2.4 percent. Additionally, revenue in GameStop's Technology Brands division dropped by 10.2 percent, due to the fact that Apple's iPhone X launched later than expected, GameStop said.
GameStop is currently holding an earnings call where it is discussing these results and answering questions from analysts. Keep checking back with GameSpot for more.
In other news, GameStop has announced its Black Friday deals--and the retailer has some of the best offers out there this year. You can see a roundup of the best deals here.
More...
Hardware sales at GameStop for the quarter rose by 8.8 percent, driven by demand for the Nintendo Switch. Management said it expects demand to continue to outpace supply for the hybrid console this holiday, adding that it's working closely with Nintendo to get more units in stores. The Xbox One X launch was also a bright spot, GameStop said, noting that it sold through its "market-leading" allocation right away.
Game sales also rose during the quarter, by 5.4 percent, thanks to a "strong title lineup," GameStop said. The retailer added that Call of Duty: WWII sales are up by a massive 64 percent compared to Call of Duty: Infinite Warfare last year on a dollar basis. Separately, Activision announced that Call of Duty: WWII sales doubled those of Infinite Warfare's over its first 10 days, so growth at individual retailers like GameStop is to be expected.
GameStop's digital sales were also a bright spot, rising 11.9 percent; this does not include revenue from Kongregate, the mobile/social game developer that it sold in July. The company's Collectibles business grew by the largest margin, rising 26.5 percent, thanks in part to the "continued expansion of licensed merchandise" in the US and abroad. For the full fiscal year, GameStop said its Collectibles business remains on track to amount to as much as $700 million.
Some soft spots for GameStop in the quarter included the pre-owned business, which saw its sales decline 2.4 percent. Additionally, revenue in GameStop's Technology Brands division dropped by 10.2 percent, due to the fact that Apple's iPhone X launched later than expected, GameStop said.
GameStop is currently holding an earnings call where it is discussing these results and answering questions from analysts. Keep checking back with GameSpot for more.
In other news, GameStop has announced its Black Friday deals--and the retailer has some of the best offers out there this year. You can see a roundup of the best deals here.
More...