FINANCE

GameStop Q4 profit up

BY Marianne Wilson

Grapevine, Texas — GameStop Corp reported a nearly 50% increase rise in fourth-quarter profit fueled by gains in its mobile and digital businesses. Profit rose to $261.1 million from $174.7 million.

Revenue for the quarter ended Feb. 2, 2013, totaled $3.56 billion compared to $3.58 billion last year. Same-store sales were down 4.6%.

Paul Raines, CEO, stated: “While 2012 was a challenging year for console gaming, we focused on factors within our control. We expanded our market leadership position, maintained our financial strength and controlled our spending. Perhaps most importantly, we invested in our mobile and digital businesses to position the company for future success. These channels delivered as planned and significantly contributed to our highest ever gross margin and profitability.”

Looking ahead, Raines said that GameStop’s market model indicates a return to growth with the launch of new game systems.

“The video game industry is anticipating a strong finish to 2013 with the release of Grand Theft Auto V and the launch of at least one next generation console by holiday. Ahead of these events, GameStop expects the first half of the year to be challenging as consumers postpone purchases leading up to the fourth quarter console launch,” Raines said.

For fiscal year 2012, total global sales were $8.89 billion, a 7.0% decrease compared to $9.55 billion in fiscal 2011. Same-store sales declined 8.0%.

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S.Gacho says:
Mar-30-2013 01:24 am

Games as one of the business
Games as one of the business in this new generation can be a great success. A lot of people love games and most especially kids. - Rich Von

S.Gacho says:
Mar-30-2013 01:24 am

Games as one of the business in this new generation can be a great success. A lot of people love games and most especially kids. - Rich Von

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REAL ESTATE

Signet Jewelers to open 65 to 75 U.S. stores

BY Marianne Wilson

Hamilton, Bermuda — Signet Jewelers Ltd. reported better-than-expected fourth-quarter results, helped by sales gains at its biggest division, Kay Jewelers. The company, which raised its quarterly dividend by 25%, said it anticipates opening 65 to 75 new U.S. stores for the year. 


Signet, which also operates the Jared chain in the United States and the Ernest Jones stores in Britain, said revenue increased 11.8% to $1.51 billion for the quarter ended Feb. 2.

Same-store sales were up 3.5% in the fourth quarter. Same-store sales at Kay increased 5.8%.

“Our record performance continues to reflect the benefits of our competitive strengths and success of our growth initiatives,” Said Mike Barnes, CEO. “The acquisition of Ultra, our share repurchase program and the increase in our quarterly dividend demonstrate our ability to capitalize on our excellent balance sheet to provide for our long-term growth and increase value for our shareholders.”

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S.Gacho says:
Mar-30-2013 01:25 am

Sometimes it really pays an
Sometimes it really pays an effort when you want your business to be stable. There are lot of things that might help you make it the way you wanted it to be. - Rich Von

S.Gacho says:
Mar-30-2013 01:25 am

Sometimes it really pays an effort when you want your business to be stable. There are lot of things that might help you make it the way you wanted it to be. - Rich Von

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News

Soft console gaming category causes GameStop sales slip

BY CSA STAFF

GRAPEVINE, Texas — GameStop reported that total global sales for the fourth quarter of 2012 were $3.56 billion compared with $3.58 billion in the prior year quarter. Consolidated comparable-store sales decreased 4.6% compared with the prior year quarter.

Paul Raines, chief executive officer, stated, “While 2012 was a challenging year for console gaming, we focused on factors within our control. We expanded our market leadership position, maintained our financial strength and controlled our spending. Perhaps most importantly, we invested in our mobile and digital businesses to position the company for future success. These channels delivered as planned and significantly contributed to our highest ever gross margin and profitability.”

GameStop’s fourth quarter net earnings were $261.1 million compared to net earnings of $174.7 million in the prior year quarter. Diluted earnings per share were $2.15 compared with diluted earnings per share of $1.27 in the prior year quarter.

For fiscal year 2012, total global sales were $8.89 billion, a 7% decrease compared with $9.55 billion in fiscal 2011. Full-year consolidated comparable-store sales declined 8% compared with fiscal 2011. Digital receipts and mobile sales drove a 21.2% increase in the other category. New hardware, new software and pre-owned sales each declined year-over-year primarily due to the effect of the longevity of the current console cycle.

GameStop’s fiscal 2012 net loss was $269.7 million compared to net earnings of $339.9 million in fiscal 2011. Diluted loss per share was $2.13 compared to diluted earnings per share of $2.41 in fiscal 2011.

Raines stated, “As we look towards the start of the new console cycle, our industry market model indicates a return to growth with the launch of new game systems. GameStop is strong, healthy and ready to lead the industry and its customers into the next phase of gaming.”

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