GameStop's Financial Numbers Are Improving
GameStop's net sales improved year-over-year and its total loss shrunk significantly from this time last year.
By Eddie Makuch on
Video game retailer GameStop has released its latest earnings report, and the company's fortunes are improving. The company's total net sales reached $1.164 billion for the quarter that ended on July 29, up from $1.136 billion during the same quarter last year.
GameStop still posted an overall net loss of $2.9 million for the quarter. However, the net loss of $2.9 million was a significant improvement against the $108.7 million loss from last year. At the end of the quarter, GameStop had $1.195 billion in cash, cash equivalents, and securities on hand.
GameStop made most of its money this quarter, $597 million, from hardware and accessories sales. Software sales reached $397 million and revenue from collectibles amounted to $169.8 million. The collectibles category was the only one to experience a year-over-year decline in net sales.
Net sales in Europe, Australia, and Canada rose year-over-year, but sales in the US dropped by 4%, GameStop said. The retailer said the overall uptick in revenue worldwide was attributable in part to the launch of a «significant software release» and better hardware sales due to improved supply. The «significant software release» could be a reference to The Legend of Zelda: Tears of the Kingdom, which was released in May and put up massive sales numbers.
In other news, GameStop's chairman, Ryan Cohen, recently made headlines for saying all consoles should have disc drives. GameStop, of course, is financially invested in physical media.
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