Global Same Store Sales Increase 11.8%; 13.7% in the U.S. and 7.9% Internationally
Sales Growth Fueled by Strong Performance in New Hardware, New Software, Accessories and Collectibles
Total global sales for the holiday period were
Gaming Business Update
- New hardware sales increased 38.3%, driven by continued strong demand for the Nintendo Switch and the launch of Microsoft’s Xbox One X.
- Sales of new video game software increased 7.3%, largely attributed to the success of Activision’s Call of Duty: WWII and continued strength in Nintendo Switch titles.
- Pre-owned sales declined 8.1%, as customers shifted their spend to compelling new video game and collectibles products.
- Video game accessories sales grew 33.7%, primarily related to demand for Nintendo Switch accessories.
Non-Physical Gaming Business Update
- Collectibles sales increased 19.4% to
$211.3 million, driven by strong performance across apparel and toys.
- Digital sales and non-GAAP digital receipts increased 36.7% and 6.7%, respectively, excluding the 2016 holiday period revenues from Kongregate which was divested in
July 2017. On a reported basis, digital sales increased 4.6%, while non-GAAP digital receipts increased 2.2%.
- Technology Brands sales, which are not included in comparable store sales, decreased 18.6%, driven by limited availability of the iPhone X and changes made by
AT&Tto the compensation structure in 2017.
Given the product category mix of sales in the holiday period,
In conjunction with the Company’s annual impairment testing of goodwill and other intangible assets, which is performed in the fourth quarter and is not yet finalized, the Company expects to record non-cash impairment charges in the range of
The Company anticipates reporting fourth quarter and full fiscal year 2017 results in late March, and will provide fiscal 2018 guidance at that time.
General information about
As a supplement to our financial results presented in accordance with U.S. generally accepted accounting principles (GAAP),
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current beliefs, views, estimates and expectations, including as to the Company’s industry, business strategy, goals and expectations concerning its market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. Such statements include without limitation those about the Company’s outlook for fiscal 2017, future financial and operating results, projections, expectations and other statements that are not historical facts. Forward-looking statements are subject to significant risks and uncertainties and actual results may differ materially from those reflected or described in the forward-looking statements. The following factors, among others, could cause actual results to differ from those reflected or described in the forward-looking statements: our inability to obtain sufficient quantities of product to meet consumer demand; the timing of release and consumer demand for new and pre-owned products; our ability to continue to expand, and successfully open and operate new stores for our collectibles and technology brands businesses; risks associated with achievement of anticipated financial and operating results from acquisitions; our ability to sustain and grow our console digital video game sales; the impact of goodwill and intangible asset impairments; cost reduction initiatives, including store closing costs; risks related to changes in, and our continued retention of, executive officers and other key personnel; changes in consumer preferences and economic conditions; increased operating costs, including wages; cyber security events and related costs; risks associated with international operations; changes to our wireless industry partnerships and operations; increased competition and changing technology in the video game industry; changes in domestic or foreign laws and regulations that reduce consumer demand for, or increase prices of, our products or otherwise adversely affect our business; our effective tax rate and the factors affecting our effective tax rate, including changes in international, federal or state tax, trade and other laws and regulations; the costs and outcomes of legal proceedings and tax audits. Additional factors that could cause our results to differ materially from those reflected or described in the forward-looking statements can be found in
Vice President, Global Controller and Investor Relations
|9 Weeks Ended||9 Weeks Ended|
|Dec. 30, 2017||Dec. 31, 2016|
|Sales||of Total||Sales||of Total|
|Net Sales (in millions):|
|New video game hardware||$||717.7||25.9||%||$||519.1||20.7||%|
|New video game software||855.2||30.9||%||797.1||31.9||%|
|Pre-owned and value video game products||472.6||17.1||%||514.3||20.6||%|
|Video game accessories||251.2||9.1||%||187.8||7.5||%|
Source: Gamestop Corporation