Gamestop's 2017 First Quarter Earnings Report
Gamestop officially released their earnings report for the first fiscal quarter of 2017 and things are looking surprisingly good for the gaming retailer. The company showed that sales were up year over year which they credit to the "robust" sales of the Nintendo Switch.
Their total global sales were up to $2.05 billion, which is up 3.8% from last year while their comparable store sales were up 2.3%. Gamestop's international sales jumped an astounding 17.1%, but unfortunately their U.S. sales were down 2.3%. Thanks to the Switch releasing in March, their new hardware sales were up by 24.6% but new software was down 2.3%. Gamestop attributes the poor software sales to the overlap of major game release dates last year.
The company's net earnings were down to $59 million from $65.8 million, but that doesn't mean the company was hurting everywhere. In particular, the company started to dabble in collectable sales which were up 39.1% to $114.5 million. Popular Pokemon collectibles are flying off the shelves and their purchase of 'ThinkGeek Inc' greatly expanded their stock of merchandise. Gamestop also said that their technology brand sales were up 21.5% to $201.4 million.
Gamespot Weighs In
Popular gaming news site Gamespot held a conference call with the company yesterday which offered some interesting information. Gamestop sold more copies of Legend of Zelda: Breath of the wild then they did Nintendo Switch consoles, they are also reportedly selling out of Switch's online before they even get to the warehouses. The retailer also stressed their continued support of VR as Playstation VR remains their Number 1 product, they also said that there will be more discussion surrounding VR at E3 this June. Gamestop had some more interesting talking points that you can find here over focused on Gamestop's report.
We here at Gigamax are excited to see more about this information on VR they are supposedly announcing at E3. With VR hardware becoming more popular in the industry, any news about the medium is highly anticipated. As expected, digital downloads seem to be cutting into their profits but not nearly as much as we expected. As always, make sure to keep checking back with GigamaxGames.com for more information on everything gaming industry related!