Video game retailer GameStop reported earnings for the quarter ended May 3, last night after the closing bell. The retailer posted $2 billion in revenue, up 7 percent compared to the $1.87 billion it made in the same period a year ago. The company reported a profit of $68 million, an increase of roughly 24.5 percent compared to last year's net earnings of $54.6 million.
The company cited worldwide sales of the Xbox One and PlayStation 4 as the "primary" driver of its respectable financial performance in the quarter. The company's new hardware category rose 81.1 percent compared to this time last year. In addition, GameStop noted that combined Xbox One and PS4 sales in the US from November until April were more than double than sales of the Xbox 360 and PlayStation 3 over the same period of time. That's good news for GameStop.
GameStop's digital business grew 9.5 during the quarter, which it attributed to the sale of digital items for the Xbox One and PS4, as well as "substantial" international PC sales. The retailer's mobile electronics business also rose 100 percent year-over-year thanks to revenue from GameStop's new offshoot brands Spring Mobile and Simply Mac.
New software sales fell 20.4 percent due to fewer top shelf titles launching in the quarter compared to last year. GameStop's pre-owned business jumped 5.3 percent year-over-year, which it attributed to consumers trading in old systems and software to upgrade to new consoles.
For the next quarter GameStop predicts comparable store sales to range from +12 percent to +19 percent year-over-year. For the full year, GameStop says it expects comparable store sales to grow in the range of +6 percent to +12 percent.