Gamestop Q1 sales and profits down, mobile/digital sales up
Gamestop's financial data for the first quarter of its fiscal 2013 have arrived like a pizza with nearly 25 percent fewer toppings than the pizza you ordered during the same 13-week period last year. Also, cheesy bread sales are way up? This may not be the strongest analogy.
In non-allegorical terms, gross revenue (overall sales) and net income (post-tax profit) were both down year-over-year, at $1.865 billion and $54.6 million, respectively. As far as net income, that's a 24.69 percent decrease from the $72.5 million Gamestop reported at the end of Q1 2012.
Meanwhile, mobile device sales were up 290 percent, though this massive increase was largely due to the fact that Gamestop's mobile trade-in/sales program was just getting started during Q1 of 2012. Digital sales also increased, to the tune of 47.3 percent year-over-year, while new software sales, both physical and digital, fell 3.8 percent.
As was the case during Q1 2012, used hardware and software sales accounted for the majority of Gamestop's pre-tax profit, with new hardware and software sales making up just 29.5 percent of the quarter's overall gross.
