GameStop Lost $673 Million in Fiscal Year 2018 - News
by William D'Angelo , posted on 02 August 2019 / 3,377 Views
GameStop in its earnings report revealed the retailer lost $673 million in the fiscal year ending February 2, 2019. Revenue decreased 3.1 percent to $8.3 billion. Store sales decreased 0.3 percent worldwide. Of that the US saw a 1.8 percent increase, while internationally saw a drop in sales by 4.8 percent.
Here is a breakdown in sales for the fiscal yaer 2018:
- Accessories sales increased 22.0%.
- Collectibles sales increased 11.2% to $707.5 million.
- Digital receipts increased 16.5% to $1.3 billion.
- New hardware sales declined 1.3%.
- New software sales declined 5.1%.
- Pre-owned sales declined 13.2%.
- Generated free cash flow of $232.7 million.
"This past year was a pivotal one for GameStop, capped by retail industry veteran George Sherman’s appointment as chief executive officer," said Dan DeMatteo, GameStop’s executive chairman. "In conjunction with the board’s comprehensive review of strategic and financial alternatives, we executed the sale of Spring Mobile at an attractive valuation. As a result, we are better positioned to drive shareholder value with an intense focus on leveraging our global gaming and collectibles business.
"Additionally, we are significantly reducing leverage through the announced retirement of $350 million of outstanding notes, and we have increased flexibility with respect to future capital allocation opportunities. We are excited to move forward under George’s leadership as we refine our strategic direction and implement several initiatives under development to strengthen the company for the future and drive sustainable growth and profitability."
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.
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I know they suck for a myriad of reasons, but really, just for being able to buy my niche games in a store I can walk into and browse, they really got it done for me.
Best Buy is where I go for that. Gamer's Club Unlocked is still saving me 20% off all brand new retail games until November of this year. I also get double points, so I get about 8% of what I spend back in giftcards.
There may be some slight differences between the United States and Canada. Here, Gamestop is called EB Games. It's the same company though, and really, the name is the only difference. As far as Best Buy. I really like it, but the never have the selection of smaller Japanese games in store, or even online that Gamestop/EB does. I guess Best Buy in the US is a bit better in that regard.
Those hardware sales will jump with those 5 next gen Consoles releasing over the next 2 years.
RIP.
Ouch
Well I hope they get their shit together. At the very least just as a place to buy game shit and for the jobs.
Penny Arcade called it back in 2007. https://www.penny-arcade.com/comic/2007/10/31 It also doesn't help that GameStop gives you only 20% of the value of your game and then sells it for 90% of the price of a brand new copy.
Well I hope they get their shit together. At the very least just as a place to buy game shit and for the jobs.
EB is and will always be better.
It is all fault of people selling their used games for 5USD and people buying those for 55USD... joking of course.
I dont agree with business practices they use on many things but where else can you buy used games at a reasonable price? When I walk into a Walmart or Target and see games (albeit new in package) that sat for years, still marked at full retail, it's hard not to appreciate Gamestop. This digital push should be alarming to consumers but instead it's being welcomed. I honestly don't get it.
"where else can you buy used games at a reasonable price?" The internet.
eBay. Amazon. And usually for much cheaper than pre-owned at GameStop.
Any Mom n' Pop used game store. There are 10 of them in the Phoenix metro alone. Four in Des Moines. Any city with a population of over 1 million should have at least one. And if not, open one yourself, and rake in the money! Lots of people collect everything from Atari all the way up to PS4. Retro gaming is a huge secondary market.
They are bleeding money allright. Will they be able to stay afloat until the next gen consoles get released?
Yes. They are in no immediate danger of bankruptcy, much less liquidation.
What!? I knew Gamestop was in decline, but I didn't know they were operating at a loss. How?! Also, why is this making me happy to read?
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