GameStop Sales Jump 25 Percent In Second Quarter On Next Generation Console Launches
Looking back, it's hard to believe that there was ever any concern over GameStop's immediate future, but there was. Prior to the Xbox One launch, Microsoft flirted with tying game discs to Xbox Live accounts and leaving the fate of the used games market up to publishers. That didn't happen, and not only is it business as usual for GameStop, but business is booming.
GameStop's new software sales grew 15.6 percent in Q2, which is the result of recent releases such as Ubisoft's Watch Dogs and Nintendo's Mario Kart 8. According to GameStop, each of these categories outperformed the market as a whole. As for the pre-owned/value category, that part of GameStop's business saw 5.5 percent growth for the second consecutive quarter.
"The second quarter demonstrates the power of the new console cycle and all of our business units, including Technology Brands, positively contributing to the company’s sales and profits," stated Rob Lloyd, chief financial officer. "The back half of the year is filled with exciting games and products coming to market and I am confident that we are prepared to capitalize on these opportunities."
After paying the bills, GameStop was left with a $24.6 million profit, up 134.3 percent compared to net earnings of $10.5 million in the prior year quarter, with diluted earnings per share coming to $0.22, up 144.4 increase from $0.09 from last year.