Despite Strong Holiday Sales GameStop Reports Losses for Fiscal Year - News
by William D'Angelo , posted on 28 March 2013 / 4,424 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.
More Articles
Always good to hear that gamestop is doing badly, they rip off everyone
My advice is they have too many locations. Nearest city I live by has three within a 10 minute drive of one another. One in a mall and one right across the street from said mall. Seems redundant to me, much like Subway's model.
Yeah its like that in my home city as well lol. There is actually a Gamestop in Korea, near where I work, however it severs a big purpose as its the only place in Korea you can get English language games.
One at my mall closed down. But 2012 was a bad year for gaming in general. And people really undervalue Gamestop.
One at my mall closed down. But 2012 was a bad year for gaming in general. And people really undervalue Gamestop.
