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After multiple quarters of attributing continuing sales slumps to both COVID-19 and the end of the console generation, GameStop has at last reached the final quarter in which it has to deal with the latter culprit.
For Q3 ending October 31, GameStop posted net sales of $1 billion, down 30% year-over-year, and a net loss of $19 million -- compared to a net loss of $83 million for the same quarter last year.
It's worth noting that last year's $83 million loss was also an improvement year-over-year from a $489 million loss in 2018, indicating that the company's aggressive cost-cutting measures are making some measure of difference on its balance sheet.
The company attributes the losses this quarter to the end of the console cycle and the limited hardware and accessory availability that came with that, as well as various game delays, and an 11% reduction in its store base -- partially offset by recaptured sales at other locations and online.
Additionally, GameStop notes a few positives in its books: its e-commerce sales were up 257% year-over-year, its inventory has been reduced by 33% year-over-year, it reduced its selling, general, and administrative expenses by $115 million, and it repaid $10 million in debt in Q3.
www.gamesindustry.biz
For Q3 ending October 31, GameStop posted net sales of $1 billion, down 30% year-over-year, and a net loss of $19 million -- compared to a net loss of $83 million for the same quarter last year.
It's worth noting that last year's $83 million loss was also an improvement year-over-year from a $489 million loss in 2018, indicating that the company's aggressive cost-cutting measures are making some measure of difference on its balance sheet.
The company attributes the losses this quarter to the end of the console cycle and the limited hardware and accessory availability that came with that, as well as various game delays, and an 11% reduction in its store base -- partially offset by recaptured sales at other locations and online.
Additionally, GameStop notes a few positives in its books: its e-commerce sales were up 257% year-over-year, its inventory has been reduced by 33% year-over-year, it reduced its selling, general, and administrative expenses by $115 million, and it repaid $10 million in debt in Q3.
GameStop has closed 462 stores so far this year, 783 in last two years
After multiple quarters of attributing continuing sales slumps to both COVID-19 and the end of the console generation, …
www.gamesindustry.biz
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