GameStop Profit Jumps 134% Year-Over-Year, As The Busy Holiday Season Awaits

Retailer posts profit of $24.6 million for the quarter; digital revenue, software sales, and preowned all posted gains during the period.

GameStop today reported earnings for the second quarter ended August 2, and the results were strong across the board. Overall, the company posted revenue of $1.73 billion for the quarter, up 25.1 percent compared to last year. Meanwhile, profit was $24.6 million, an increase of 134.3 percent compared to last year's net earnings of $10.5 million.

The retailer's digital business was also booming during the quarter, up 17.6 percent to $179.2 million. This was led by strong platform currency, mobile, and Steam Wallet sales, GameStop said. In terms of hardware, GameStop saw new system sales jump 124.8 percent, thanks in part to "worldwide demand" for the Xbox One and PlayStation 4, the company said.

Software sales rose, too, climbing 15.6 percent year-over-year. GameStop called out Watch Dogs and Mario Kart 8 as top-performers during the quarter. GameStop's preowned business also saw positive growth during the period, rising 5.5 percent.

The good news for GameStop didn't stop there, as the retailer's mobile and consumer electronics category rose 85.1 percent, led by strong results for the company's Spring Mobile and Simply Mac business units.

"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," CFO Rob Lloyd said in a statement. "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."

It wasn't all good news for GameStop during the quarter, however. Last week, GameStop CEO Paul Raines was treated for a brain tumor, though he is expected to make a full recovery.

GameStop will hold a conference call to discuss these results today starting at 2 PM PDT/5PM EDT. Check back later for more. Or stick around here and watch GameStop president Tony Bartel dump ice water on his head to raise awareness for ALS.

Eddie Makuch is a news editor at GameSpot, and you can follow him on Twitter @EddieMakuch

For all of GameSpot's news coverage, check out our hub. Got a news tip or want to contact us directly? Email news@gamespot.com

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Discussion

41 comments
homey_d_clown
homey_d_clown

Gamespot is my last option to purchase games.

I like the idea of being able to sell my games, if I want, so I currently don't do digital.

n3cw4rr10r
n3cw4rr10r

I buy from gamestop. Hell some of the guys @ my local store are also gamers and are on my friends list and we play bf4. I only buy new games from gs. My only gripe with GS is the trade in value for used games and the price of used games. I sell my games on ebay, so its all good.

AuronAXE
AuronAXE

Somehow never heard of Steam Wallets before, that's a great idea. Now I know what to get gaming friends as a gift.

rmiller365
rmiller365

I like gamestop. Get a their app and you can get 5 points on your card once a day. Use your card and get more points. I got a nice new headset for free.

Plus I'm a collector so I never trade in my games

bernard978
bernard978

Never bought from Gamestop and I never intend to.

stage4saiyan
stage4saiyan

If I buy new, I buy from Gamestop. I never understood why people pretend they're so evil...seriously, a game is $60 no matter where I go. Might as well drive 5 minutes to a GS instead of waiting a week for it to come in the mail. 

burnettaj
burnettaj

It's simple, you either boycott them and move on with life or you use their services for your gaming wants. Next topic people.

Martyr77
Martyr77

How many times have they used that Gamestop picture now? It has to be higher than 10 now.

Jew1
Jew1

yeah if you look at gamestop's stock flows over the years there's a similar pattern that emerges over the same period of months. Actually makes it really easy to buy low sell high and the shares aren't that expensive meaning you can buy up a lot. One of the easiest ways to make your money work for you

jinzo9988
jinzo9988

Gamestop might be doing alright for now, but once the need for hardware dies down, things will slow down for them.  More and more people are going digital, Gamestop faces used game sales competition from Walmart, and Gamestop are sitting on an enormous pile of used Xbox 360 games that they're going to have to find some way to get rid of.  Had the Xbox One been backwards compatible, that won't be as big a problem as it will be a year or two or three down the line.

EasyComeEasyGo
EasyComeEasyGo

If you guys hate Gamestop so bad, stop selling your games to them. I don't have a problem with them, I buy my games new, sometimes I pre-order game from them, and I never ever trade or sell my games to them. Sounds simple enough.

bdrtfm
bdrtfm

Just goes to show how few people there are who are actually smart with their money. Their games are more expensive than anywhere else and they give the lowest amount for your used games. The staff are annoying, even when just answering the phone. Yet, they are making money hand over fist. Everyone insists the place is a rip-off - which it definitely is - and that they would never shop there yet, clearly a heck of a lot of people do.


Maybe I should start ripping people off in my store. Apparently that's what everyone is looking for.

Pewbert
Pewbert

Daily Gamestop article. Oh wait, we had that earlier. Hmmm.

Random_Matt
Random_Matt

Surprised they haven't bought out GAME. Hear they are a greedy company.

Barighm
Barighm

Er...if we all hate GS so much, why are their revenues increasing? Just goes to show how little whining on the internet actually accomplishes.

keech
keech

Considering Gamestop has been continually lowering the trade in value of games (while still reselling them for the same prices as always) and having weaker and weaker sales and specials, this isn't too surprising.

xcollector
xcollector

@stage4saiyan

@grenadehh @stage4saiyan If I buy new I expect the game to be factory sealed. Maybe they don't do it where you are but the stores near me usually take the discs out and keep them behind the counter. If the seal is broken the game isn't new anymore. Also trying to find a new copy in the store is a nightmare. Its like they hide them so you buy used. Its much more easier to buy new at all their competitors. And their competitors are litterally next door too for most locations. With $60 being the same everywhere I have no reason to go to them.

I also don't like talking to the people at Gamespot. I went in to buy just 1 freakin used game and they kept pestering me to buy all this other stuff.

The only thing I don't have a problem with is buying from their website when they have free shipping promos. The new games they ship are factory sealed and there are no kids to pester me.

The only time I go to the store though is if I need it that same day. There is a lot less hassle for me when buying online. All the major retailers like BestBuy & Amazon have their warehouses really close to where I live, so it only takes 1 or 2 days for the mail man to deliver stuff at regular speed. But I can see how those who live further away from the shipping centers would prefer to pick it up at a local retail outlet.

deth420
deth420

@stage4saiyan its not the buying new that troubles me. its the ripoff trade in "economy" they have created.

grenadehh
grenadehh

@stage4saiyan Exactly what I  just said. Even with Amazon Prime you're still going to wait a day and probably going to pay nonsense tax depending on where you live regardless.

grenadehh
grenadehh

@burnettaj Not really. Gamestop is the only place to buy games.


When you find a mom and pop store that isn't 35 minutes away and can actually stay in business for more than 2  years, in every town in America, let us know.


Until then as bad as GameStop sucks, it's the only place people are going to buy physical retail games because it's faster than Amazon and cheaper when you account for shipping.

daikkenaurora12
daikkenaurora12

@Martyr77 They use this one and another one with employees wearing christmas hats.  They need new stock photos.

grenadehh
grenadehh

@Martyr77 Idk what you're talking about ,that is the only GameStop on Earth and that was the only time it was ever open, obviously.

deth420
deth420

@Jew1 Something about your comment, and your user name made me laugh...

daikkenaurora12
daikkenaurora12

@EasyComeEasyGo I have traded games like twice and usually just buy new from them. I just wish they would stop asking me about preordering games.

grenadehh
grenadehh

@bdrtfm Yea, no. Game prices are pretty much the same literally everywhere. You have to hunt pretty hard to find cheaper physical games than MSRP and when you do it's only going to be 1 or 2 titles at a time, And you definitely won't find better pre-owned prices unless you honestly are too dumb to take shipping and/or fuel costs into account when shopping online or literally trekking across town.

grenadehh
grenadehh

@Random_Matt Yea it's been a while since they supplanted a better gaming store chain. I will never forgive them for EB.

Martyr77
Martyr77

@Barighm  Actually it accomplishes a lot if you vote with your wallet. Look how Microsoft caved after they tried to rip us all off with their DRM and anti-consumer policies. It made a difference. There are just a lot of parents who have no idea and go to Gamestop.

ikbenhomer
ikbenhomer

@Barighm Cause clueless grandmothers and parents that know very little about videogames in the first place are going into the one of the few places they know sells videogames to buy them at very overmarked prices for their even more clueless children/grandchildren

HonorOfGod
HonorOfGod

Meh I pretty much went fully digital with STEAM anyways. GS sucks.

burnettaj
burnettaj

@grenadehh Ok will do. I'll keep you posted. Thank you for posting a reply to my message. It's most appreciated :) 

grenadehh
grenadehh

@Martyr77 @Barighm Shut up, immediately, with your whining crybaby bullshit. I thought all you "MS broke into my house, ate my ice cream, punched my dog, and stole the motherboard battery out of my playstation" people left already.

enate
enate

@HonorOfGod I'm pretty sure they were not talking about driving to the store to pick up a PC game.