GameStop's efforts to generate growth by diversifying its business model worked well in 2015, as the video game retailer posted its third straight year of positive comps.
The Texas-based company said that for the full fiscal year of 2015 ended on Jan. 30,total sales were $9.36 billion, a 0.7% increase over 2014. Same-store sales increased 4.3% (a 4.8% increase in the U.S. and a 3% increase internationally) compared to fiscal 2014, primarily driven by sales of video game accessories, pre-owned products and collectibles.GameStop's fiscal 2015 net earnings were $402.8 million.
"In 2015, the GameStop team achieved several significant milestones in our ongoing transformation efforts," said CEOPaul Raines. "The company posted its third straight year of positive comps, exceeded $1 billion in digital receipts, gained market share in our core video game business, and introduced new collectibles products that contributed over $300 million in sales. The company also more than doubled the number of Technology Brand stores we operate, growing sales to $534 million. These accomplishments drove record gross profit and net income, strong earnings per share growth and an increase in per store profits in our GameStop branded stores for the third straight year."
For the fourth quarter,profit at GameStop was $247.8 million, or $2.36 a share, compared with a year-earlier profit of $244.1 million, or $2.23 a share. Revenue rose 1.4% to $3.52 billion. Same-store sales grew 3.1%.
The retailer said that itsmobile and consumer electronics category increased 25.8%, led by growth in Technology Brands.Collectibles sales increased over 300%, driven by the successful integration of collectibles sections within GameStop stores and the acquisition of ThinkGeek.
For the current quarter, GameStop said it expects overall sales to fall between 4% and 7%, with same-store sales slipping between 9% and 7%. GameStop said it sees earnings per share of between 58 cents and 63 cents.
GameStop operates more than 7,100 stores across 14 countries.
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