U.S. Markets closed

Blog Exposure - GameStop Releases 2017 Holiday Sales Results

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.

Earnings Outlook

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.

Management's View

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.


Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors