Outlines Core Tenets of New Strategic Plan and Doubles Operating Profit Improvement Goal to Exceed $200 Million on Run-Rate Basis by 2021
GameStop's second quarter total global sales decreased 14.3% (13.1% in constant currency) to $1.3 billion, resulting in a consolidated comparable store sales decrease of 11.6%.
- New hardware sales decreased 41.1%, reflective of recent announcements for next generation console launches in 2020.
- New software sales decreased 5.3%, with growth in Nintendo Switch software titles more than offset by weaker title launches across other consoles in the quarter compared to last year.
- Accessories sales decreased 9.5%.
- Pre-owned sales declined 17.5% with declines in hardware and software.
- Digital receipts decreased 11.2% to $227.2 million due to weaker title launches in the quarter compared to last year.
- Collectibles sales increased 21.2%, with continued strong double-digit growth in both domestic and international stores.
Excluding the $400.9 million of impairment charges and other items, GameStop's adjusted net income (loss) from continuing operations for the second quarter was ($32.0) million or ($0.32) per diluted share, compared to net income (loss) from continuing operations of ($10.2) million, or ($0.10) per diluted share, in the prior-year quarter.