GameStop Corp. reported sales and earnings for the fourth quarter and fiscal year ended January 30, 2016. Total global sales for the fourth quarter of 2015 were $3.53 billion.
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This is a 1.4% increase (a 5.3% increase in constant currency) compared to $3.48 billion in the prior year quarter as sales of non-physical gaming products, such as digital, mobile & consumer electronics, and collectibles, offset a decline in new software sales.
Pre-owned sales were flat (a 3.0% increase in constant currency) compared to the fourth quarter of 2014. Consolidated comparable store sales increased 3.1% (a 3.0% increase in the U.S. and a 3.3% increase internationally).
Non-GAAP digital receipts increased 9.7% (a 13.4% increase in constant currency) to $404.5 million, or $60.7 million of sales on a GAAP basis, a 14.5% increase over the prior year quarter.
The growth was driven by downloadable content and mobile digital sales.
In the fourth quarter, Technology Brand revenues increased 57.4% to $177.9 million and operating earnings for the segment were $16.9 million, a 69.6% increase over the prior year quarter. The company added 202 net Technology Brand stores during the quarter, ending the fiscal year with 1,036 stores.
Sales in the Other category grew 77.4% (an 85.4% increase in constant currency), as sales of collectibles merchandise increased more than 300% compared to the prior year quarter. In addition, the company ended the fiscal year with 35 collectibles stores open around the world.
GameStop's fourth quarter net earnings were $247.8 million, or diluted earnings per share of $2.36, compared to net earnings of $244.1 million, or diluted earnings per share of $2.23, in the prior year quarter.
The fourth quarter results include charges of $6.6 million ($3.8 million, net of tax), or $0.04 per diluted share, related to the closure of its operations in Puerto Rico and store impairments.
Excluding these charges, GameStop's adjusted net earnings for the fourth quarter grew 6.8% to $251.6 million from adjusted net earnings of $235.5 million in the prior year quarter. Adjusted diluted earnings per share were $2.40 compared to adjusted diluted earnings per share of $2.15 in the prior year quarter. Foreign currency exchange rate changes negatively impacted operating earnings by $13.9 million, or $0.09 per diluted share.
Fiscal 2015 results
For fiscal year 2015, total global sales were $9.36 billion, a 0.7% increase (a 5.4% increase in constant currency) compared to $9.30 billion in fiscal 2014.
Full year consolidated comparable store sales increased 4.3% (a 4.8% increase in the U.S. and a 3.0% increase internationally) compared to fiscal 2014, primarily driven by sales of video game accessories, pre-owned products and collectibles. ■