GameStop Profit, Sales Down16 Aug, 2012 By: Chris Tribbey
Gaming retailer GameStop reported lower sales and lower profit for the second quarter of 2012, with declines in new software and hardware sales, due to a lack of new game releases.
The company reported sales of $1.55 billion, down from $1.74 billion during the second quarter of 2011, and a profit of $21 million, down from nearly $31 million during the same quarter of 2011.
“We continue to see solid sales growth as well as strong margins in our new retail offerings and digital channels,” said company CEO Paul Raines. “We are focused on staying ahead of the curve as the competitive landscape evolves and we manage through the trough of the console cycle. Finally, the ongoing share buyback and increase in dividend demonstrate our confidence in the future of GameStop and our commitment to improving total shareholder returns.”
GameStop repurchased 7.6 million shares during the quarter.
Sales of used games fell more than 11%, while still outperforming the sale of new games, GameStop reported. Comparable same-store sales were down 9.3% year over year.
Digital sales were up 27% to $134 million, while mobile sales, including tablet sales, were $29 million.
For the third quarter of the year GameStop is expecting earnings per share of between 28 cents and 36 cents.