GameStop Holiday Sales Drop 27.5% in 2019 - News
by William D'Angelo , posted on 09 March 2020 / 2,561 Views
GameStop has released their quarterly earning report for the holiday period, which ended on January 4, 2020. Revenue for the quarter fell 27.5 percent to $1.83 billion.
GameStop has lowered their full year expectation from a 5 to 10 percent decline in revenue to the "high-teens." GameStop is now predicting a drop in revenue of 19 top 21 percent.
George Sherman, GameStop’s chief executive officer said, "We expected a challenging sales environment for the holiday season as our customers continue to delay purchases ahead of anticipated console launches in late 2020.
"However, the accelerated decline in new hardware and software sales coming out of black Friday and throughout the month of December was well below our expectations, reflective of overall industry trends. On a positive note, we continued to see growth in the Nintendo Switch platform, which supports our view that our sales will strengthen as new consoles and innovative technology are introduced.
"Given the deceleration in sales trends, particularly in December, we are adjusting our sales outlook for fiscal 2019 and now expect fiscal 2019 earnings to be below guidance. While we expect the challenges that we faced in the fourth quarter to continue into fiscal 2020, we believe we have the right long-term action plans in place to optimize profitability and increase new revenue streams in advance of new console introductions for holiday 2020. We look forward to delivering progress against our strategy as we move through the year."
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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Perhaps next gen can provide them some hope for next year.
Shame, GameStop actually had a great sale that allowed me to buy 90% of all the high profile games released this year.
Hope that they can hold on
Why no mention of digital sales being a thing in their report? Or is that was "overall industry trends" means? Has Gamestop ever stated that digital sales trends have affected their revenue, or do they usually come up with ways to explain their losses that seem temporary.
To answer my question, it seems like they have mentioned digital sales cutting into their used game market in the past. Even though I have many fond memories of going to Gamestop, I have always felt that they have been a greedy company and I'm strangely comfortable with them posting large losses. Maybe it's because the time that I went to buy a game and then got in my car to realize they charged me for the extended warranty without asking me... Or the time I went to buy a brand new copy of Nier: Automata, and paid full price for a game without a case, because they always open up one copy to use the case on display... Or maybe it's just because it's impossible for me to buy a game without being asked to pre-purchase whatever upcoming games are on their way, or if I would prefer a used copy of that game instead.
It’s an ongoing trend now that digital downloads are the thing. Sadly EB Games in Australia which is owned by GameStop just announced the closure of 19 stores around the country before the end of month.
People aren't going to physical stores as much either. People like myself that buy mostly physical games, are using places like Amazon, instead.
@Sixteenvolt420 Yeah, I"m 90% physical games, and I never go to Gamestop. A Mom n' Pop used game store always has better prices.
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