GameStop Reports 175% E-Commerce Growth In Q4

GameStop Reports 175% E-Commerce Growth In Q4

One of the most widely followed stocks of 2021 reported full fiscal year earnings after close Tuesday.

What Happened: GameStop Corp (GMEreported fourth-quarter revenue of $2.12 billion, a year-over-year decline of 12%. Same-store sales were up 6.5% in the fourth quarter.

GameStop reported quarterly earnings of $1.34 per share, which missed the analyst consensus estimate of $1.35. This is a 5.5% increase over earnings of $1.27 per share from the same period last year.

Full fiscal year revenue was $5.09 billion, down from $6.46 billion in the prior year. Same-store sales were down 9.5% for the full fiscal year.

The company closed over 12% of its store base during the year in a continuous effort to improve financials. GameStop also announced it would wind down operations in Finland, Norway, and Sweden.

The company’s e-commerce business continued to be the big news with a year-over-year increase of 175% in the fourth quarter and 191% for the full fiscal year.

What’s Next: GameStop is not issuing guidance for fiscal 2021.

“We are off to a strong start in 2021 as February comparable store sales increased 23%, led by continued strength in global hardware sales,” the company said.

GameStop is excited about its long-term e-commerce initiatives and continuing its core business during the “emerging console cycle.” An emphasis is being put on improving the e-commerce business and customer experience.

GameStop will also leverage the “company’s digital assets, including Game Informer and PowerUp Rewards, to increase market share within the growing online gaming community.”

GME Price Action: Shares of GameStop are down 2.6% in after-hours trading. Shares were down 6.5% during the regular trading session Tuesday.

© 2021 Benzinga does not provide investment advice. All rights reserved.

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Mike Faragut 3 weeks ago Member's comment

But $GME revenue was down 10% from 2019 as a whole. This 175% number just means that their online sales were previously pathetic and don't make up nearly enough of their business as they need it to.