GameStop Corp. (NYSE:GME) released its fourth quarter earnings report after closing bell tonight, posting adjusted earnings of $2.40 per share on revenue of $3.53 billion. Analysts had been expecting sales of $3.57 billion and earnings of $2.25 per share. Reported earnings were $2.36 per share, compared to $2.23 per share in the year-ago quarter.
GameStop’s fiscal 2015 ended on Jan. 30.
GameStop’s sales grow
GameStop said its total global sales climbed 1.4% year over year or 5.3% in constant currency, boosted by sales of non-physical gaming products, like digital games, and mobile and consumer electronics and collectibles. New software sales continued to decline, offsetting the gain in sales of the other three categories. Sales of pre-owned games remained flat year over year or increased 3% in constant currency. Consolidated comparable store sales in the fourth quarter climbed 3.1% year over year, including a 3% increase in the U.S. and a 3.3% increase outside the U.S.
Non-GAAP digital receipts climbed 9.7% to $404.5 million, driven by downloadable content and mobile digital sales. GameStop said revenues from its Technology Brand segment climbed 57.4% to $177.9 million. The segment brought $16.9 million in operating earnings, representing a 69.6% year over year increase for the quarter. The gaming retailer opened 202 new Technology Brand stores during the fourth quarter, ending it with 1,0.6 stores.
“Other” category sales increased 77.4% year over year, driven by collectibles sales, which climbed by over 300%. At the end of January, GameStop had 35 collectibles stores open globally.
GameStop’s comparable store sales to decline in Q1
For the first quarter, GameStop management expects earnings of 58 cents to 63 cents per share, compared to the consensus estimate of 71 cents per share. They expect comparable store sales to decline by between 9% and 7% and total sales to decline by between 7% and 4% for the first quarter.
