GameStop Reports Winter Holiday Sales Boost Despite Pandemic, New Gaming Console Shortages
January 13, 2021
GameStop reported that worldwide sales results for the nine-week holiday period ended Jan. 2 reflected 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 a planned “de-densification” strategy, temporary store closures around the world due to pandemic-related government mandates and lower store traffic, particularly later in December, due to the significant impacts of COVID-19.
Total comparable store sales increased 4.8% compared with last year and reflected a 29.6% sequential improvement from the third quarter of fiscal 2020. The 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 $1.77 billion, a 3.1% decrease compared to 2019, as strong console demand for PlayStation 5 and Xbox Series X and Series S systems was offset by store closures mandated by local governments due to COVID-19, and industry-wide limited supply of new gaming consoles, and supply chain constraints broadly.
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E-commerce sales, which are included in comparable store sales, rose 309% and represented approximately 34% of total company sales, with total worldwide online sales year to date reaching over $1.35 billion, far exceeding management’s $1 billion growth objective.
Regional sales in Australia and New Zealand, where the GameStop’s operations were materially less impacted by the effects of the pandemic, total comparable sales for the nine-week period increased approximately 31%, outperforming the other operating regions.
“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,” CEO George Sherman said in a statement.
GameStop’s current fourth quarter ends Jan. 30.