How did video game retailer GameStop fare this holiday? We now have a better idea, as the company on Tuesday reported sales performance for the nine-week holiday period ended January 3.
Total global sales fell 6.7 percent to $2.94 billion. Overall comparable store sales fell 3.1 percent, the result of a 3.3 percent decrease in the US and a 2.7 percent decrease internationally. Looking at just November, GameStop reports that sales declined 12 percent, though the company points out it had a tough time comparing to November 2013 when the Xbox One and PlayStation 4 launched.
GameStop attributed the overall downturn, in part, to foreign currency exchange rates.
In terms of new software, this category grew 5.8 percent, led by a 94.4 percent increase in Xbox One and PS4 game sales. Top titles were Call of Duty: Advanced Warfare, Grand Theft Auto V, and Far Cry 4, GameStop said.
New hardware sales dropped 32 percent year-over-year, due in part to the aforementioned tough comparisons to the last year and the Xbox One's lower price point in 2014 compared to 2013. Though sales might have fallen off compared to last year, GameStop reports that demand for the Xbox One and PS4 "continues to be strong," as evidenced in a 31.3 percent increase in units sold in December 2014 compared to December 2013.
GameStop's pre-owned/value business unit dropped 1.3 percent, while the company's burgeoning mobile and consumer electronics category rose 28 percent, led by a 75.8 percent jump in Technology Brands revenue.
The retailer's digital business was a bright spot during the holiday period, with digital receipts rising 42.8 percent to $296.6 million for the period. GameStop attributed the uptick in sales to its console digital business, which grew more than 50 percent compared to last year.
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