Gamestop shares its second quarter financial results for 2017
Sales going up! Profits going down!
Our friendly store Gamestop reported today their financial results for the second quarter of the year which ended July 29, 2017. According to the report, sales were benefit with a raise thanks to a strong demand for the Nintendo Switch and collectibles.
Nintendo’s newest console contributed to this increase with a 14.8%. It has received a splendid reception from customers in the US, especially in Japan, and it’s no surprise that it’s encouraging an increase in the hardware sales of the store. On the other hand, software and pre-owned sales declined by 3.4% and 7.5% respectively, mostly caused “lagging Xbox One sales”.
Digital sales also did their job, growing by 28.1% ($46.5 million). This increase can be accredited to downloadable content and mobile. Collectibles sales increased 36.1% to $122.5 million, driven by a group of licensed merchandise including Pokemon and Marvel Products. It seems it’s on track to meet its 2017 revenue target of $650 million to $700million.
Even though sales seems to be doing well, profits are a different story. Net earnings were $22.2 million compared to net earnings of $27.9 million from last year. However, Gamestop gained $7.3 million related to the sale of Kongrate.
Based on this results, the executive officer of the store is confident in the forecast for the rest of the year. Continuous demand for the Nintendo Switch, the coming launch of the Xbox One X and a solid slate of triple A titles will continue to expand sales growth and maybe net earnings.
Time will tell how much they will end up selling.