Video game retailer GameStop has released its first quarter earnings for the current fiscal year, and has reported a 2.3% growth in store sales, thanks to a “successful” Nintendo Switch launch.
For the period ended April 29, total global sales increased by 3.8% to $2.05 billion, with a 24.6% increase in hardware sales led by Switch. However, new software sales declined by 8.2%, which GameStop attributes to “tough overlap of a few key AAA titles launched last year.” The retailer is referring to major video game releases that were clustered around Fall/Holiday 2016, resulting in almost all of them taking a hit.
Pre-owned sales also declined by 6.2%, which the retailer says it was expecting.
Digital sales and Collectibles both experienced growth. While digital sales increased by 3.0% to $44.1 million, thanks in part to GameStop’s Kongregate business, digital receipts saw a decline due to lower sales of new consoles bundled with digital software. On the other hand, a global demand for Pokémon products led Collectibles sales to a significant increase of 39.1%, amounting to $114.5 million.
In terms of the future, CEO Paul Raines notes that GameStop will continue “executing our diversification strategy, exercising cost discipline and increasing our share in the video game market.” “Our first quarter results reflect the power of our leadership position within the video game market and our ongoing diversification efforts,” he said.
[Source: GameStop]
