GameStop Revenue Drops 3.6% to 2B, Profits Dip 1.1% to $57M

23rd November, 0 replies

GameStop has released its earnings report for the third quarter, which ended October 31st, 2015. Revenue dropped 3.6 percent to $2 billion, while profits dipped 1.1 percent to $57 million.

"Our third quarter results were at the low end of our guidance range due to lower than expected new software and hardware sales and delays in Technology Brands store openings," said GameStop CEO Paul Raines. "However, our expectations for the full year have not changed. Looking ahead to the fourth quarter, a solid slate of new video games, coupled with contributions from our diversified AT&T, Apple and ThinkGeek businesses and our in-store collectibles offerings are expected to drive our fourth quarter results."

New console sales dropped 20.4 percent, while new software sales declined 9.3 percent. The drop in software sales is due to the strong launch of Destiny and Super Smash Bros. back in 2014. Used game sales increased 0.6 percent off the back of increase sales of pre-owned software for the PlayStation 4 and Xbox One.

Technology Brands revenue increased 64.2 percent thanks to a 31.1 percent increase in the 'Mobile and Consumer Electronics' category. The 'Other' category saw an increase of 60.8 percent, which was largely driven by a 400 percent increase in sales of collectible merchandise.

Source:

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