Total global sales for the holiday period were
- New hardware sales decreased 6.1%, as a result of the successful Xbox One X launch in the 2017 holiday period, partially offset by strong growth in Nintendo Switch sales.
- Sales of new video game software decreased 8.3%, driven primarily by the difference in launch timing of Activision’s Call of Duty: Black Ops 4 which released in
October 2018, compared to Call of Duty: WWII which released in November 2017.
- Pre-owned sales declined 16.4% reflecting declines in software and hardware.
- Video game accessories sales grew 28.7% on the continued strength of controller and headset sales.
- Collectibles sales increased 3.7% to
$219.2 million. The sales growth was constrained by significantly lower promotional activity in fiscal 2018 in an effort to better manage gross margin rate.
- Digital receipts increased 16.8% to
$352.9 milliondriven primarily by strength in sales of digital currency.
- Technology Brands sales, which are not included in comparable store sales, decreased 19.3%, driven by a decrease in store count and store traffic.
The Company anticipates reporting fourth quarter and full fiscal year 2018 results in late March and will provide fiscal 2019 guidance at that time. The company anticipates that its Spring Mobile business will generate approximately
General information about
Non-GAAP Measures and Other Metrics
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 2018, future financial and operating results, projections, expectations and other statements that are not historical facts. All statements regarding the board’s review of operating, strategic, financial and structural alternatives and expected costs and benefits, including whether operating, strategic, financial and structural alternatives could unlock value, are forward-looking statements. Forward-looking statements are subject to significant risks and uncertainties and actual developments, business decisions and 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: the uncertain outcome, impact, effects and results of the board’s review of operating, strategic, financial and structural alternatives; volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital and credit; 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 business; 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; 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; and unexpected changes in the assumptions underlying our outlook for fiscal 2018. Additional factors that could cause our results to differ materially from those reflected or described in the forward-looking statements can be found in
|9 Weeks Ended||9 Weeks Ended|
|January 5, 2019||December 30, 2017|
|Sales||of Total||Sales||of Total|
|Net Sales (in millions):|
|New video game hardware||$||673.7||25.6||%||$||717.7||25.9||%|
|New video game software||784.5||29.8||%||855.2||30.9||%|
|Pre-owned and value video game products||395.1||15.0||%||472.6||17.1||%|
|Video game accessories||323.3||12.3||%||251.2||9.1||%|
|Technology Brands (1)||126.3||4.8||%||156.6||5.7||%|
|(1)||Our Technology Brands product category is comprised of sales from Spring Mobile, Simply Mac and our Cricket Wireless branded stores ("Cricket Wireless"). Cricket Wireless was sold in January 2018 and Spring Mobile was sold on January 16, 2019. In our future press releases and filings with the Securities Exchange and Commission, the sales from Simply Mac and Cricket Wireless will be reported in the "Other" product category and the sales of Spring Mobile will be reported as discontinued operations.|
Source: GameStop Corporation