GameStop Reports 2020 Holiday Sales Results
January 11 2021 - 8:30AM
GameStop Corp. (NYSE: GME), today reported
worldwide sales results for the nine-week holiday period ended
January 2, 2021 reflecting a 4.8% increase in comparable store
sales and a 309% increase in E-Commerce sales. Total sales
declined 3.1% driven by an 11% decrease in the company’s store base
due to its planned de-densification strategy, temporary store
closures around the world due to government mandates and lower
store traffic, particularly later in December, due to the
significant impacts of COVID-19. The Company believes the
industry-wide traffic decline during the Holiday period adversely
impacted comparable sales for the nine-week period in the high
single-digit to low double-digit percentage point range. In
addition, significant worldwide supply chain constraints impacted
the ability to distribute products to customers across all sales
channels. However, the Company experienced unprecedented
demand for recently launched gaming consoles, and while consumer
demand far outpaced constrained supply in the nine-week period, the
Company believes these products will drive sales well into 2021 as
console availability from our suppliers improves later in the
year.
Holiday Sales (the nine-week period
ended January 2, 2021 compared to the nine-week period ended
January 4, 2020)
- Total comparable store
sales increased 4.8% compared to last year and reflected a
29.6 percentage point sequential improvement from the third quarter
of fiscal 2020. These positive results were adversely
impacted in the high single-digit to low double-digit percentage
point range, as a result of a significant reduction in consumer
traffic related to the increase in COVID-19 cases;
- Net sales were
$1.770 billion, a 3.1% decrease compared to 2019, as strong console
demand was offset by store closures under the Company’s planned
de-densification strategy, temporary store closures mandated by
local governments due to COVID-19, and industry-wide limited supply
of new gaming consoles, and supply chain constraints broadly;
- E-Commerce sales,
which are included in comparable store sales, rose 309% and
represented approximately 34% of total company sales, with total
worldwide E-Commerce sales year to date reaching over $1.35
billion, far exceeding the Company’s $1.0 billion growth
objective;
- Regional Sales, in
Australia/New Zealand, where the Company’s operations were
materially less impacted by the effects of the COVID-19 pandemic,
total comparable sales for the nine-week period increased
approximately 31%, outperforming the Company’s other operating
regions.
George Sherman, GameStop’s chief executive
officer said, “GameStop maintained its status as the omni-channel
destination for gaming and entertainment with unprecedented demand
for the new gaming consoles and a significant increase in
E-Commerce sales. Demand for the new generation of consoles
remains very strong, and as a result, we anticipate the consumer’s
excitement for the new console technology will benefit us going
forward well through 2021. We reported a 4.8% increase in
comparable store sales, including over 300% increase in E-Commerce
sales reflecting demand for new consoles, continued strength for
Nintendo Switch and our expanded gaming product assortment. While
E-Commerce sales contributed approximately 34% of total sales for
the first nine weeks of the fourth quarter, our sales growth
progression also includes an adverse impact to comparable
transactions related to the meaningful drop in retail traffic
during the holiday sales season due to an increase in COVID-19
cases around the world.”
Mr. Sherman continued, “Overall, we remain
confident in both the positive growth aspects for 2021 driven by
our strategy to add new and exciting product revenue streams across
all things games and entertainment and the strong demand for the
new generation for console-based video game products We look
forward to executing on both of these areas in 2021 to expand our
addressable market and product offerings supported by the many
exciting opportunities to leverage our brand, extensive loyalty
member base, and improving digital capabilities.”
Fiscal Fourth Quarter 2020 Outlook (13
weeks ending January 30, 2021)The Company continues to
focus on efforts that position it to manage through this
unprecedented time, including maintaining its balance sheet
strength, prioritizing the allocation of resources to areas of the
business that produce strong cash flow, reducing expenses across
the business, developing and expanding its digital strategy, and
intensifying inventory discipline. Due to the uncertainty around
the duration and evolving impact of COVID-19, the Company is
continuing to suspend guidance, however, unless further unforeseen
COVID-19 related impacts occur, it expects to realize positive
comparable store sales results and profitability in the fiscal
fourth quarter.
The Company anticipates reporting fourth quarter
and full fiscal year 2020 results in late March.
About GameStop.GameStop Corp.,
a Fortune 500 company headquartered in Grapevine, Texas, is a
digital-first omni-channel retailer, offering games and
entertainment products in its over 5,000 stores and comprehensive
E-Commerce properties across 10 countries. GameStop, through
its family of brands offers the best selection of new and pre-owned
video gaming consoles, accessories and video game titles, in both
physical and digital formats. GameStop also offers fans a
wide variety of POP! vinyl figures, collectibles, board games and
more. Through GameStop’s unique buy-sell-trade program, gamers can
trade in video game consoles, games, and accessories, as well as
consumer electronics for cash or in-store credit. The
company's consumer product network also includes www.gamestop.com
and Game Informer® magazine, the world's leading print and digital
video game publication.
General information about GameStop Corp. can be
obtained at the Company’s corporate website. Follow @GameStop and
@GameStopCorp on Twitter and find GameStop on Facebook at
www.facebook.com/GameStop.
Cautionary Statement Regarding
Forward-Looking Statements - Safe HarborThis press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
statements are based upon management’s current beliefs, views,
estimates and expectations, including as to the Company’s industry,
business strategy, goals and expectations concerning its market
position, future operations, margins, profitability, comparable
store growth, capital expenditures, liquidity and capital resources
and other financial and operating information, including
expectations as to future operating profit improvement. Such
statements include without limitation those about the Company’s
financial results, expectations and other statements that are not
historical facts. Forward-looking statements are subject to
significant risks and uncertainties and actual developments,
business decisions and results may differ materially from those
reflected or described in the forward-looking statements. The
following factors, among others, could cause actual results to
differ materially from those reflected or described in the
forward-looking statements: macroeconomic pressures, including the
effects of COVID-19 on consumer spending and the Company’s ability
to keep stores open; the impact of the COVID-19 pandemic on the
Company’s business and financial results; the economic conditions
in the U.S. and certain international markets; the cyclicality of
the video game industry; the Company’s dependence on the timely
delivery of new and innovative products from its vendors; the
impact of technological advances in the video game industry and
related changes in consumer behavior on the Company’s sales; the
Company’s ability to keep pace with changing industry technology
and consumer preferences; the impact of international crises and
trade restrictions and tariffs on the delivery of the Company’s
products; the Company’s ability to obtain favorable terms from its
suppliers; the international nature of the Company’s business; the
Company’s dependence on sales during the holiday selling season;
fluctuations in the Company’s results of operations from quarter to
quarter; the Company’s ability to de-densify its global store base;
the Company’s ability to renew, terminate or enter into new leases
on favorable terms; the competitive nature of the Company’s
industry; the Company’s ability to attract and retain executive
officers and key personnel; the adequacy of the Company’s
management information systems; the Company’s reliance on
centralized facilities for refurbishment of its pre-owned products;
the Company’s ability to react to trends in pop culture with regard
to its sales of collectibles and dependence on licensed products
for a substantial portion of such sales; the Company’s ability to
maintain security of its customer, employee or company information;
potential harm to the Company’s reputation; the Company’s ability
to maintain effective control over financial reporting; the
Company’s vendors’ ability to provide marketing and merchandise
support at historical levels; restrictions on the Company’s ability
to purchase and sell pre-owned video games; potential decrease in
popularity of certain types of video games; changes in the
Company’s global tax rate; potential future litigation and other
legal proceedings; changes in accounting rules and regulations; and
the Company’s ability to comply with federal, state, local and
international law. Additional factors that could cause results to
differ materially from those reflected or described in the
forward-looking statements can be found in Exhibit 99.4 of
GameStop's Current Report on Form 8-K filed on June 5, 2020 and in
GameStop’s Quarterly report on Form 10-Q filed on September 9, 2020
and other filings made from time to time with the SEC and available
at the SEC's Internet site at http://www.sec.gov or
http://investor.GameStop.com. Forward-looking statements contained
in this release speak only as of the date of this release. The
Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by any
applicable securities laws.
ContactGameStop Corp. Investor
Relations(817) 424-2001investorrelations@gamestop.com
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