GameStop Q4 profit up
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%.
Soft console gaming category causes GameStop sales slip
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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Babies’R’Us, WhatToExpect.com conceive a new partnership
WAYNE, N.J. — Babies"R"Us has partnered with WhatToExpect.com to provide expectant moms access to their combined content and retail resources. As part of this collaboration, the Babies"R"Us Registry is now available on WhatToExpect.com. Additionally, the retailer plans to feature content from WhatToExpect.com through various Babies"R"Us channels.
Beginning immediately, expectant parents are able to create their Babies"R"Us Registry directly from WhatToExpect.com when visiting the site for advice throughout their pregnancy. This is the first time the Babies"R"Us Registry will be available through an external channel beyond Babiesrus.com and Babies"R"Us stores. WhatToExpect.com will also feature Babies"R"Us user reviews and suggested must-have products to provide moms- and dads-to-be with the inspiration and confidence they need when creating a baby registry. T
"Babies"R"Us and What to Expect are among the first places a mom turns to when she finds out she is pregnant, and we are pleased to offer moms-to-be the convenience of our combined resources in one location," said Peter Reiner, SVP marketing, Toys"R"Us, U.S. "We believe this partnership will enable us to broaden the reach of our Babies"R"Us Registry even further, and provide our customers even more comprehensive content about the journey of pregnancy and parenting from a trusted source."
Additionally, the Resource Center on Babiesrus.com will begin featuring expert editorial content from WhatToExpect.com, including articles, videos and tips from Heidi Murkoff, the creator of the What to Expect When You’re Expecting pregnancy and parenting brand. Topics will focus on both pre- and post-natal advice, including crib-training techniques, tips for bathing a newborn and diaper bag necessities, among other subjects. Babies"R"Us will use this content across its other channels, including on its social media sites and in its stores.
"What do expectant and new parents need – besides more sleep? They need information, support, reassurance, and realistic, practical preparation for the adventure that lies ahead. They also need a whole lot of baby products," said Heidi Murkoff. "That’s why our partnership with Babies"R"Us makes so much sense – between the What to Expect books, the What to Expect website and apps, and the most widely used baby registry, we’ll be an easy-to-access, one-stop source for busy, sometimes overwhelmed moms and dads."
The two brands will support the partnership with a comprehensive cross-promotional program, inclusive of digital advertising, social media and signage within Babies"R"Us stores nationwide.
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