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44
The segment operating profit was $44.3 million for fiscal 2013 compared to an operating loss of $397.5 million for fiscal
2012. The increase in operating earnings was primarily due to asset impairment charges of $4.7 million recognized during fiscal
2013 compared to charges totaling $467.0 million for goodwill and asset impairments and restructuring charges during fiscal 2012.
Excluding the impact of the goodwill and asset impairment and restructuring charges, segment operating earnings were $49.0
million in fiscal 2013 compared to $69.5 million in fiscal 2012. The decrease in adjusted operating earnings during fiscal 2013
included the impact of a decline in sales prior to the launch of the next generation consoles and the impact of low margin consoles
as a percentage of total sales, as well as the impact of the operating earnings in the 53rd week in fiscal 2012, partially offset by a
$3.1 million favorable impact of the exchange rate.
Technology Brands
Segment results for the Technology Brands segment include our Simply Mac, Spring Mobile and Aio Wireless stores. As
of February 1, 2014, the Technology Brands segment operated 218 stores, all of which were acquired or opened during fiscal 2013.
For the 52 weeks ended February 1, 2014, Technology Brands net sales totaled $62.8 million, with an operating loss of $0.2 million
that included startup costs for new stores.
Fiscal 2012 Compared to Fiscal 2011
Video Game Brands
United States
Segment results for the United States Video Game Brands segment include retail operations in 50 states, the District of
Columbia, Puerto Rico and Guam, the electronic commerce Web site www.gamestop.com, Game Informer magazine,
www.kongregate.com, a digital PC game distribution platform available at www.gamestop.com/pcgames and an online consumer
electronics marketplace available at www.buymytronics.com. As of February 2, 2013, the United States Video Game Brands
segment included 4,425 GameStop stores, compared to 4,503 stores on January 28, 2012.
Net sales for fiscal 2012 decreased 6.7% compared to fiscal 2011 and comparable store sales decreased 8.7%. The decrease
in comparable store sales was primarily due to decreases in new video game hardware sales, new video game software sales, pre-
owned and value video game products sales, and video game accessories sales offset partially by an increase in digital, mobile
and consumer electronics and other product sales and sales for the 53rd week in fiscal 2012. The decrease in new video game
hardware sales was primarily due to a decrease in hardware unit sell-through related to being in the late stages of the console cycle
and sales from the launch of the Nintendo 3DS in the first quarter of fiscal 2011 which exceeded the sales from the launch of the
Sony PlayStation Vita in the first quarter of fiscal 2012, offset partially by the launch of the Nintendo Wii U in the fourth quarter
of fiscal 2012 and sales for the 53rd week in fiscal 2012. The decrease in new video game software sales was primarily due to
declines in demand due to the late stages of the console cycle and a lack of new release video game titles in fiscal 2012 when
compared to fiscal 2011, offset partially by sales for the 53rd week in fiscal 2012. The decrease in pre-owned and value video game
product sales was primarily due to a decrease in store traffic related to the lack of new release video game titles in fiscal 2012
when compared to fiscal 2011 and the late stages of the console cycle, offset partially by sales for the 53rd week in fiscal 2012.
The increase in digital, mobile and consumer electronics and other product sales was primarily due to an increase in sales of digital
products, PC entertainment software and mobile devices in fiscal 2012 when compared to fiscal 2011 and sales for the 53rd week
in fiscal 2012.
Asset impairments of $5.7 million were recognized in fiscal 2012 primarily related to impairment of definite-lived assets.
Asset impairments and restructuring charges of $28.9 million were recognized in fiscal 2011 primarily related to asset impairments,
severance and disposal costs associated with the exit of non-core businesses. Segment operating income for both fiscal 2012 and
fiscal 2011 was $501.9 million. Excluding the impact of asset impairments and restructuring charges, adjusted segment operating
income decreased $23.2 million from $530.8 million in fiscal 2011 to $507.6 million in fiscal 2012 primarily related to the decrease
in comparable store sales between years.
Canada
Segment results for Canada include retail operations in Canada and an e-commerce site. As of February 2, 2013, the Canadian
segment had 336 stores compared to 346 stores as of January 28, 2012. Net sales in the Canadian segment in the 53 weeks ended
February 2, 2013 decreased 4.0% compared to the 52 weeks ended January 28, 2012. The decrease in net sales was primarily
attributable to a decrease in sales at existing stores of 4.6%, partially offset by the favorable impact of changes in exchange rates
of $1.6 million and additional sales in the 53rd week of fiscal 2012 when compared to fiscal 2011. The decrease in net sales at
existing stores was primarily due to decreases in new video game hardware sales, new video game software sales and pre-owned
and value video game product sales, offset partially by an increase in digital, mobile and consumer electronics and other product
sales. The decrease in new video game hardware sales was primarily due to a decrease in hardware unit sell-through related to
being in the late stages of the console cycle. The decrease in new video game software sales was primarily due to lower sales of
new release video game titles and the late stages of the console cycle. The decrease in pre-owned and value video game product