LONDON, UK / ACCESSWIRE / January 17, 2018 / Active-Investors.com has just released a free research report on GameStop Corp. (NYSE: GME). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GME as the Company's latest news hit the wire. On January 12, 2018, the Company reported its sales results for the nine-week holiday period ended December 30, 2017. Register today and get access to over 1000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, GameStop most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Strong Sales Growth
The Company declared that global sales across the entire business were $2.77 billion for the holiday period, a 10.6% increase compared to the same period in 2016. For the holiday period, total comparable store sales increased 11.8%, growing 13.7% in the United States and 7.9% internationally, and worldwide omnichannel sales increased 21.5% compared to the same period in 2016.
Sales Summary of Gaming and Non-Physical Gaming Business
- For the nine-week holiday period ended December 30, 2017, GameStop's new hardware sales increased 38.3% on a y-o-y basis. The primary reason attributable to the increase was the continued strong demand for popular new gaming devices like the Nintendo Switch and the launch of Microsoft's Xbox One X.
- Sales of new video game software also increased 7.3% on a y-o-y basis. It was declared that pre-owned sales of the games declined 8.1% on a y-o-y basis, as customers preferred spending on compelling new video games and collectibles products. On the other end, video game accessories sales grew 33.7% on a y-o-y basis for the holiday period, driven by the increased demand for Nintendo Switch accessories.
- For the non-physical gaming business, collectibles sales increased to $211.3 million on a y-o-y basis, driven by a strong performance across apparel and toys. On a reported basis, digital sales increased 4.6%, while non-GAAP digital receipts increased 2.2% on a y-o-y basis.
- The Company disclosed that the technology brands sales decreased 18.6% on a y-o-y basis for the reported period. The reason for the decrease in sales was the availability constraints of the Apple Inc.'s iPhone X and changes made by AT&T to the compensation structure in 2017.
GameStop expects to deliver adjusted earnings per share near the middle of its previously announced full-year 2017 guidance of $3.10 to $3.40. The Company continues to anticipate adjusted operating earnings for its Technology Brands business to be in the range of $75 million to $90 million for FY17, excluding any year-end impairments and store closing charges, as well as any tax effects related to the recently enacted tax reform legislation.
GameStop is expecting to record non-cash impairment charges in the band of $350 million to $400 million at the end of Q4 FY17, mainly related to its Technology Brands business. The impairment charges are primarily attributable to the reluctance of people to upgrade to new mobile devices and the changes made by AT&T to the compensation structure. The charges do not affect the Company's cash flows or liquidity position. Reports suggest that the shares of GameStop fell post this announcement.
Commenting on the results, Dan DeMatteo, Interim Chief Executive Officer (CEO) of GameStop, stated that the Company is satisfied with the sales performance during the holiday period, which is driven by strength in the new video game hardware Nintendo Switch and Xbox One X, and a solid increase in the Company's collectibles business. He added that the results demonstrate the customers' enthusiastic response to GameStop's new products and its ability to execute on strategically targeted promotions.
About GameStop Corp.
Founded in 1996 and headquartered in Grapevine, Texas, GameStop is a family of specialty retail brands that makes the most popular technologies affordable and simple. The Company is a global retailer of multichannel video game, pop culture collectibles, consumer electronics, and wireless services. It operates more than 7,500 stores in 14 countries across Europe, Canada, Australia, and the United States.
Stock Performance Snapshot
January 16, 2018 - At Tuesday's closing bell, GameStop's stock dropped 3.38%, ending the trading session at $17.16.
Volume traded for the day: 7.85 million shares, which was above the 3-month average volume of 3.68 million shares.
After yesterday's close, GameStop's market cap was at $1.70 billion.
Price to Earnings (P/E) ratio was at 5.02.
The stock has a dividend yield of 8.86%.
The stock is part of the Services sector, categorized under the Electronics Stores industry.
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