Here's How Much Money GameStop Made Last Year

[UPDATE] During a post-earnings call with analysts today, GameStop management discussed how the retailer is in the middle of something of a transition phase. In 2016, the company expects non-physical gaming items--such as digital content and collectibles, among other things--to account for 25 percent of the company's overall operating earnings. GameStop is looking to boost this number to 50 percent by 2019.

Management also said it is expecting further declines to new software and hardware sales in the current fiscal year. As for the reported revenue drop for its first quarter, this was partially attributed to fewer major games coming out during the period compared to last year.

Additionally, overall, GameStop is seeing less demand for hardware, while uncertainties exist regarding what Nintendo may have in store regarding its mysterious NX system, management said.

It was also stressed during the call that while GameStop's secondhand business remains important, it is no longer directly tied to the health and viability of GameStop overall. This is something of a change from before, as GameStop's buy/sell/trade model--which, again, still remains important--was at one time a cornerstone of the company's business.

We also learned during the call that GameStop remains cautions about the virtual reality market, while management also said it coneinues to look for merger and acquisition opportunities.

The original story is below.

Retailer GameStop today reported earnings for the fourth quarter and fiscal year ended January 30, 2016, and while the numbers were largely positive, the store is expecting a downturn soon.

Total global sales for the quarter were $3.53 billion, up 1.4 percent from $3.48 billion last year. Net software sales declined 4.4 percent, but this downturn was made up for by increases in sales for things like digital content, mobile and consumer electronics, and collectibles.

GameStop secondhand sales were flat year-over-year for the fourth quarter, coming in at $729.3 million for the latest period, compared to $729 million a year ago.

Hardware sales for the fourth quarter rose to $822 million, compared to $808 million during the same period last year.

The retailer's digital business rose 9.7 percent to $404.5 million, marking an increase of 14.5 percent. GameStop said this uptick in sales was led by DLC and mobile digital sales, presumably through its mobile game division Kongregate.

GameStop's Technology Brand segment brought in $177.9 million for the quarter, an increase of 57.4 percent. The company established 202 Technology Brand stores during the three-month period, bringing its total number of stores by the end of the fiscal year to 1,036.

Sales in GameStop's Other category, which includes collectibles and other merchandise from ThinkGeek, grew 77.4 percent. Collectibles and merchandise sales rose by more than 300 percent during the quarter.

Overall, GameStop made a profit of $247.8 million during the quarter, up from $244.1 million during the same period last year. The fourth quarter results also include a charge of $6.6 million related to GameStop's decision to close all of its stores in Puerto Rico.

For the full fiscal year, global sales grew slightly, rising 0.7 percent to $9.36 billion, compared to $9.3 billion during the previous fiscal year. Additionally, GameStop's digital business rose 11.2 percent, climbing to $1.05 billion. The mobile and consumer electronics category was also a bright spot, increasing 25.8 percent, with Technology Brands leading the growth.

Hardware sales for the full year came in at $1.94 billion, falling from $2.02 billion during the previous fiscal year.

In all, GameStop made a profit of $402.8 million, which includes a $17.4 million charge that covers its acquisition of ThinkGeek, costs related to converting RadioShack stores into GameStop establishments, and Puerto Rico "exit costs." By comparison, GameStop made $393.1 million in profit for the previous fiscal year.

Looking ahead, GameStop said it expects total sales in its current quarter to be down 4-7 percent, though the company did not provide an explanation for this projected downturn. For the full year, meanwhile, total sales are expected to be up as much as 3 percent compared to the recently concluded fiscal year.

GameStop will hold an earnings call today at 2 PM PST / 5 PM EST to discuss these results and answer analyst questions. Check back later for more.