GameStop Performs Decently on Lower First-Quarter Sales

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GameStopRetailer GameStop announced the financial results for its fiscal first quarter ended April 28, 2012. Sales at GameStop stores fell compared to the last year, but GameStop is working to combat the contraction through online sales and mark-ups. Read on for more details...
For its fiscal first quarter ended April 28, 2012, GameStop reported consolidated net income of $72.5 million, compared to $80.4 million in the comparable quarter the previous year. Importantly, "consolidated comparable store sales" decreased 12.5%. If that sounds confusing, that's because it's easy to mask falling sales with sales from newly opened stores. This indicates that GameStop is selling significantly less than it was a year ago, and that's bad. GameStop partially offset the decline thanks to online sales and "gross margin expansion" (meaning that GameStop is successfully selling items with higher mark-ups.


As usual, used video game products were responsible for nearly half of GameStop's gross profits. In the latest quarter, used video game products provided 30.9% of sales (compared to 27.4% in the same quarter the prior year), but brought in 49.1% of gross profits (compared to 48.0% in the same quarter the previous year).

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This page contains a single entry by Editor published on May 17, 2012 7:55 PM.

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