GameStop's sales jumped 25 percent year-over-year for the second time in 2021, driven by continued demand for new consoles.
GameStop’s sales jumped 25 percent year-over-year for the second time in 2021, driven by continued demand for new consoles like the PlayStation 5 and Xbox Series X|S.
For the three-month period ending on July 31 2021, the Texas-headquartered retailer pulled in $1.183 billion in net sales. For the same quarter in 2020, it had only pulled in $942 million.
Hardware and accessories sales made the biggest jump year-over-year, with sales going from $441.6 million in Q2 2020 to $609.6 million in Q2 2021, making up half of the company’s sales. Software only rose $10 million year-over-year, from $386.5 million to $396.6 million, and dipped down to only being 33 percent of GameStop’s sales. (It was 41 percent in 2020).
Collectible sales jumped from $113.9 million in 2020 to $117.2 million in 2021, a nudge that brought it to accounting for 15 percent of the Gamestop’s revenue.
GameStop also managed to staunch its financial bleeding over the massive losses it took in Q2 of 2020. Last year, it lost $111.3 million as the COVID-19 pandemic reduced foot traffic to stores. This year it only posted a loss of $61.6 million in the same quarter.
Its adjusted operating loss for the period in 2020 was $84.7 million—in this year’s second quarter, the loss contracted to $51.4 million.
In its earnings report, GameStop boasted to investors that the company ended the quarter with no long-term debt, other than a $47.5 million low-interest loan associated with the French government’s pandemic response. The company also opened new leases on a fulfillment center in Reno, Nevada, as well as a customer service center in Pembroke Pines, Florida.
Earlier in the year, the company urged investors to use its total net sales as its guiding metric for the rest of 2021, stating it would not be providing further guidance as the company reacted to both the global COVID-19 pandemic and the sudden surprise rallying around the company’s stock thanks to a Reddit-driven investor revolt in January 2021.
As of this writing, GameStop shares are down .33 percent, trading at $198.80 per share on the New York Stock Exchange.
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