GameStop Sales And Earnings Up
The videogame retailer reports increased earnings and profitability in its second fiscal quarter.
GameStop has reported a rise in sales for the quarter ended June 31, its second fiscal quarter. Sales rose 3.4 per cent to $1.80 billion (£1.15 billion), compared to $1.74 billion (£1.11 billion) for the same quarter last year. Net earnings increased by 4.2 per cent to $40.3 million (£25.8 million) from last year’s $38.7 million (£24.8 million) in the same quarter.
The upturn was mostly attributed to sales of new hardware and games, while an increased market share bolstered new videogame software sales by 5.3 per cent.
"Based on the outstanding initial results of our new customer loyalty program and selling downloadable content (DLC) in stores, we will accelerate and complete the national roll-out of both programs in the third quarter," says GameStop executive chairman Dan DeMatteo.
"Additionally, we purchased Kongregate, a leading social gaming destination, to advance our digital strategy. These investments are evaluated with a focus of increasing return on invested capital over a period of time. In addition, we are reviewing the use of excess cash to enhance shareholder returns."
GameStop has opened a total of 99 new stores this year, consisting of 48 in the US, 35 in Europe, six in Canada and ten in Australia/New Zealand. The company also completed a $300 million share-buyback program, retiring 2,250,400 shares at $20.93 each.
InstantAction CEO Louis Castle recently criticised GameStop for its practice of heavily promoting second-hand games.