Despite Strong Holiday Sales GameStop Reports Losses for Fiscal Year - News/ 3,505 Views
Retailer GameStop has reported on its fourth quarter earnings which ended February 2nd and its full year earnings. Revenue for the quarter decreased slightly to $3.56 billion, from $3.58 billion during the same quarter a year ago. However, profits did increase to $261.1 million, up from $174.7 million.
For the full fiscal year, revenue dropped by seven percent to $8.89 billion from $9.55 billion. GameStop recorded a loss of $269.7 million, which compares to a profit of $339.9 million the previous year.
"While 2012 was a challenging year for console gaming, we focused on factors within our control," CEO Paul Raines stated."We expanded our market leadership position, maintained our financial strength and controlled our spending."
"Perhaps most importantly, we invested in our mobile and digital businesses to position the company for future success," continued Raines. "These channels delivered as planned and significantly contributed to our highest ever gross margin and profitability."
GameStop's digital and mobile sales improved significantly for the year. It helped increase the sales of the "Other" business by 21.2 percent year-over-year.
"As we look towards the start of the new console cycle, our industry market model indicates a return to growth with the launch of new game systems," added Raines. "GameStop is strong, healthy and ready to lead the industry and its customers into the next phase of gaming."
For the first quarter in its next fiscal year, GameStop expects sales to decline between six and 8.5 percent. For its full fiscal year, GameStop expects sales to be flat or to be down by up to eight percent.