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38
The following table sets forth gross profit (in millions) and gross profit percentages by significant product category for the
periods indicated:
52 Weeks Ended
February 1, 2014
53 Weeks Ended
February 2, 2013
52 Weeks Ended
January 28, 2012
Gross
Profit
Gross
Profit
Percent
Gross
Profit
Gross
Profit
Percent
Gross
Profit
Gross
Profit
Percent
Gross Profit:
New video game hardware............... $ 176.5 10.2% $ 101.7 7.6% $ 113.6 7.0%
New video game software................ 805.3 23.1% 786.3 21.9% 839.0 20.7%
Pre-owned and value video game
products............................................ 1,093.9 47.0% 1,170.1 48.1% 1,221.2 46.6%
Video game accessories ................... 220.5 39.3% 237.9 38.9% 251.9 38.1%
Digital .............................................. 149.2 68.5% 120.9 58.0% 66.5 46.5%
Mobile and consumer electronics .... 65.1 21.4% 41.3 20.6% 3.5 27.3%
Other ................................................ 150.6 36.1% 193.3 37.2% 183.8 40.5%
Total ................................................. $ 2,661.1 29.4% $ 2,651.5 29.8% $ 2,679.5 28.1%
Fiscal 2013 Compared to Fiscal 2012
Net sales increased $152.8 million, or 1.7%, to $9,039.5 million in the 52 weeks of fiscal 2013 from $8,886.7 million in the
53 weeks of fiscal 2012. Sales for the 53rd week included in fiscal 2012 were $112.2 million. The increase in net sales during fiscal
2013 was primarily attributable to an increase in comparable store sales of 3.8% compared to fiscal 2012. Additionally, sales
included $62.8 million from the new Technology Brands segment. These increases were partially offset by a decline in domestic
sales of $185.9 million due to a 4.1% decline in domestic store count, changes in foreign exchange rates, which had the effect of
decreasing sales by $23.3 million when compared to the 53 weeks of fiscal 2012, and sales from the 53rd week in fiscal 2012. The
increase in comparable store sales was primarily due to strong sales performance during the second half of fiscal 2013. Refer to
the note to the Selected Financial Data table in "Item 6 — Selected Financial Data" for a discussion of the calculation of comparable
store sales.
New video game hardware sales increased $396.6 million, or 29.7%, from fiscal 2012 to fiscal 2013, primarily attributable
to an increase in hardware unit sell-through due to the launches of the Microsoft Xbox One and the Sony PlayStation 4 in November
2013. These increases were partially offset by declines in sales of previous generation hardware. New video game software sales
decreased $101.5 million, or 2.8%, from fiscal 2012 to fiscal 2013, primarily due to fewer new titles that were released during
fiscal 2013 when compared to fiscal 2012 and by the additional sales for the 53rd week in fiscal 2012. Pre-owned and value video
game product sales decreased $100.7 million, or 4.1%, from fiscal 2012 to fiscal 2013, primarily due to less store traffic during
the majority of fiscal 2013 because of lower video game demand due to the late stages of the previous console cycle, and also due
to sales for the 53rd week in fiscal 2012. Sales of video game accessories declined $51.2 million, or 8.4% from fiscal 2012 to fiscal
2013 due to the decline in demand for video game products in the late stages of the last console cycle, offset slightly by sales of
accessories for use with the recently launched consoles. Digital revenues increased $9.3 million, or 4.5%, from fiscal 2012 to
fiscal 2013 with growth limited due to the conversion of certain types of digital currency cards from a full retail price revenue
arrangement to a commission revenue model. Mobile and consumer electronics sales increased $103.4 million, or 51.6%, from
fiscal 2012 to fiscal 2013, due to increased growth of the mobile business within the Video Game Brand stores and due to the
Technology Brands stores acquired or started in the fourth quarter of fiscal 2013. Sales of other product categories decreased
$103.1 million, or 19.8%, from fiscal 2012 to fiscal 2013, primarily due to a decrease in sales of PC entertainment software due
to strong launches of PC titles during fiscal 2012.
As a percentage of net sales, new video game hardware sales increased and sales of new video game software, pre-owned
and value video game products and video game accessories decreased in fiscal 2013 compared to fiscal 2012. The change in the
mix of net sales was primarily due to the launch of the new hardware consoles in the fourth quarter of fiscal 2013.
Cost of sales increased by $143.2 million, or 2.3%, from $6,235.2 million in fiscal 2012 to $6,378.4 million in fiscal 2013
primarily as a result of the increase in net sales discussed above and the changes in gross profit discussed below, partially offset
by the cost of sales associated with the 53rd week in fiscal 2012.
Gross profit increased by $9.6 million, or 0.4%, from $2,651.5 million in fiscal 2012 to $2,661.1 million in fiscal 2013.
Gross profit as a percentage of net sales was 29.8% in fiscal 2012 and 29.4% in fiscal 2013. The gross profit percentage decreased
primarily due to an increase in sales of new video game hardware as a percentage of total net sales and the decrease in gross profit
as a percentage of sales on pre-owned and value video game products. This decrease was partially offset by a $33.6 million benefit