GameStop Loses $678M for 3rd Quarter, Digital Sales Increase 31% - News/ 8,395 Views
GameStop has reported on its third quarter sales, which ended on October 27, 2012. Revenue for the month decreased $0.18 billion year-over-year to $1.77 billion. The company profited $53.9 million during the same quarter a year ago, however due to impairment charges of $678.8 million the company lost $624.3 million this quarter.
Sales for new software, pre-owned software and new hardware decreased 8.3 percent. The good news is that the company's 'other' sales, which includes digital and mobile sales, increase 31.1 percent year-over-year. Digital sales increased 31.1 percent to $127 million and mobile sales were $43.2 million.
"Diligent operational efforts in a tough video game market as well as continued margin expansion of 200 basis points resulted in third quarter earnings exceeding expectations," said CEO Paul Raines. "We are now focused on delivering a successful holiday quarter driven by great titles, an unrivaled loyalty program, exciting new businesses and the Wii U launch."
GameStop repurchased 3.7 million shores of common stock during the third quarter for a total of $76.8 million. The board of directors has approved the repurchasing of another $500 million worth of stock.
"During the quarter, we reached an important milestone of repurchasing $1 billion of our stock since 2009," said CFO Rob Lloyd. "Our on-going buyback program and quarterly dividends highlight our commitment to improving total shareholder return through disciplined capital allocation."
For the first three quarters of the year, 39 weeks in total, the company has posted revenue of $5.33 billion, which is down from $5.97 billion during the same period a year ago. The company has profited $1.68 billion, down from $1.74 billion year-over-year.