GameStop Revenue Up, Profit Down22 May, 2014 By: Chris Tribbey
Gaming retailer GameStop enjoyed a 3.4% rise in revenue for its fiscal fourth quarter (ended Feb. 1) to $3.68 billion, thanks to strong sales of both the Xbox One and PlayStation 4 gaming consoles.
However, net earnings were down to $220.5 million, compared to $261.1 million the same quarter a year ago, partly due to the closure of the company’s cloud streaming tech firm Spawn Labs.
“The launch of new consoles in 2013 marked the return of innovation to the video game category and GameStop’s market share increased to an all-time high,” said GameStop CEO Paul Raines. “Our emerging digital and mobile businesses, which did not exist three years ago, surpassed $1 billion of revenue. As we push forward into 2014, both the re-energized video game category and our new technology brands business unit provide us with solid growth opportunities in the consumer electronics and wireless markets.”
Comparable store sales were up 7.8% for the quarter. New hardware sales rose 31.5% to $1.16 billion, new game software sale rose 33% to $1.21 billion, pre-owned sales were up 20.1% to $742 million and digital sales rose nearly 2% to $66.1 million.