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GameStop Ups Q2 Collectibles Revenue 36%

30 Aug, 2017 By: Erik Gruenwedel

GameStop reported second-quarter (ended July 28) collectibles sales increased 36.1% to $122.5 million, driven by an assortment of licensed merchandise including Pokémon and Marvel products.

The nation’s largest video game retailer added five collectibles stores during the quarter, bringing its total global portfolio to 99 stores. The collectibles business — which includes action figures, posters, T-shirts and related pop culture memorabilia — is on track to meet its 2017 revenue target of $650 million to $700 million.

GameStop, which is facing challenging times in the video game software and hardware market, has branched out to collectibles, technology brands and online sales to buttress revenue growth.

Technology brands sales increased 7% to $188.3 million, driven by the year-over-year growth in AT&T authorized retail stores. Digital sales grew 28.1% to $46.5 million. The growth was driven primarily by downloadable content and mobile.

“We expect that our technology brands AT&T wireless business will benefit from a boost in consumer demand driven by the launch of innovative new mobile handsets, including Apple’s next-generation iPhone,” GameStop CEO Paul Raines said on a recent fiscal call.

Meanwhile, legacy video game sales received continued support from the ongoing Nintendo Switch rollout. New hardware sales increased 14.8%, led by Switch. New software sales and pre-owned sales declined 3.4% and 7.5%, respectively, impacted by lagging Xbox One sales.

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