GameStop Sales, Profit Drop23 May, 2013 By: Chris Tribbey
Gaming retailer GameStop May 23 reported both lower revenue and a smaller profit for the fiscal first quarter of 2013, ended May 4.
Total worldwide sales were $1.87 billion, down 6.8% from $2 billion from the same quarter in 2012. GameStop attributed the drop to lower hardware sales.
Net earnings for the quarter were $54.6 million, down from $72.5 million.
Mobile sales grew 290% to $46.8 million and digital sales grew 47.3%. New software sales decreased 3.8%, which was favorable compared with the industry-wide decrease of 14.2%. New hardware sales were down 30.6%, with pre-owned hardware sales down 7.5%.
To date, this year GameStop reported it owns a 47.7% market share of new PlayStation 3 and Xbox 360 software.
“GameStop’s continuing margin expansion, growing new businesses and market share gains are the results of executing our strategic plan. We look forward to capitalizing on the upcoming new console cycle,” said GameStop CEO Paul Raines.
For the second quarter of 2013, GameStop expects comparable store sales to be down as much as 16%.