GRAPEVINE, Texas, Aug. 24, 2017 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE:GME), a global family of specialty retail brands that makes the most popular technologies affordable and simple, today reported sales and earnings for the second quarter ended July 29, 2017.
Paul Raines, chief executive officer, stated, “Our second quarter sales results were driven by continued strong demand for Nintendo Switch and Collectibles. Looking at the second half of 2017, the Nintendo Switch, the launch of Microsoft’s Xbox One X, and a solid slate of AAA titles should drive growth in the video game category. In addition, we expect that our Technology Brands AT&T Wireless business will benefit from a boost in consumer demand driven by the launch of innovative new mobile handsets, including Apple’s next-generation iPhone.”
Second Quarter Results
Total global sales increased 3.4% to $1.69 billion, resulting in consolidated comparable store sales growth of 1.9% (-1.4% in the U.S. and +9.8% internationally). New hardware sales increased 14.8%, led by continued demand for Nintendo Switch. New software sales and pre-owned sales declined 3.4% and 7.5%, respectively, impacted by lagging Xbox One sales.Worldwide omnichannel sales increased by 86.2% as the company promoted and secured leading market share of Nintendo Switch. During the launch and rollout, the company leveraged all of its sales platforms, including website, web-in-store, pickup-at-store, ship-from-store, and mobile.
Digital sales grew 28.1% to $46.5 million, while non-GAAP digital receipts increased 17.4% to $241.4 million. The growth was driven primarily by downloadable content and mobile.
Collectibles sales increased 36.1% to $122.5 million, driven by an assortment of licensed merchandise including Pokémon and Marvel products. The company added five Collectibles stores during the quarter, bringing the total global portfolio to 99 stores. The Collectibles business is on track to meet its 2017 revenue target of $650 million to $700 million.
Technology Brands sales increased 7.0% to $188.3 million, driven by the year-over-year growth in our AT&T authorized retail stores. Operating earnings increased 7.9% to $15.0 million.
GameStop’s second quarter net earnings were $22.2 million, or $0.22 per diluted share, compared to net earnings of $27.9 million, or $0.27 per diluted share in the prior-year quarter. The second quarter results include a gain of $7.3 million (both before and after tax) related to the sale of Kongregate, which led to a lower effective tax rate.
Excluding this gain, GameStop's adjusted net earnings for the second quarter were $14.9 million, compared to adjusted net earnings of $27.9 million in the prior-year quarter. Adjusted diluted earnings per share were $0.15 compared to adjusted diluted earnings per share of $0.27 in the prior-year quarter.
A reconciliation of non-GAAP results, including adjusted net income, operating earnings and Technology Brands operating earnings to its closest GAAP measure is included with this release (Schedule III).
Capital Allocation Update
On August 21, 2017, GameStop’s board of directors declared a quarterly cash dividend of $0.38 per common share payable on September 21, 2017 to shareholders of record as of the close of business on September 8, 2017.Earnings Outlook
The company is reiterating its full-year diluted earnings per share guidance of $3.10 to $3.40, and given the success of hardware sales to date, we now expect full-year comparable store sales to be at the high end of our previously stated guidance range of -5.0% to 0.0%.
from GoNintendo
0 comments: