GameStop 2014 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2014 GameStop annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

52 Weeks Ended
February 1, 2014
53 Weeks Ended
February 2, 2013 Change
Dollars in millions Dollars in millions $%
Gross Profit:
New video game hardware(1)..................................................... $176.5 $101.7 $74.873.5%
New video game software......................................................... 805.3786.3 19.0 2.4
Pre-owned and valuevideo game products............................... 1,093.91,170.1 (76.2) (6.5)
Video game accessories............................................................. 220.5237.9 (17.4) (7.3)
Digital........................................................................................ 149.2120.9 28.3 23.4
Mobile and consumerelectronics ............................................. 65.1 41.3 23.8 57.6
Other(2)....................................................................................... 150.6193.3 (42.7) (22.1)
Total........................................................................................... $2,661.1 $2,651.5 $9.6 0.4%
___________________
(1) Includes sales of hardware bundles, in which hardware and digital games are generally sold together as asingleSKU.
(2) Other products include revenues from the sales of PC entertainment software, interactive toys and licensed merchandise,
strategy guides and revenues from PowerUp Pro loyalty members receiving Game Informer magazine in physical form.
Net Sales
Net sales increased $152.8 million, or 1.7%, in fiscal 2013 compared to fiscal 2012. Sales for the 53rd week included in
fiscal 2012 were $112.2 million. The increase in net sales during fiscal 2013 was attributable to an increase in comparable store
sales of 3.8% compared to fiscal 2012, primarily due to strong sales performance during the second half of fiscal 2013.Additionally,
sales included $62.8 million from the new Technology Brands segment. These increases were partially offset by adecline in
domestic sales of $185.9 million due to a4.1%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. Refer to the note to the Selected Financial Data table in "Item 6—Selected Financial Data" for adiscussion of the calculation
of comparable store sales.
The net increase in net sales was due to the following:
•New video game hardware sales increased $396.6 million, or 29.7%, for fiscal 2013 compared to fiscal 2012, primarily
attributable to an increase in hardware unit sell-through due to the launches of the Microsoft Xbox One and the Sony
PlayStation 4inNovember2013. These increases were partially offset by declines in sales of previous generation hardware.
•Digital revenues increased $9.3 million, or 4.5%, for fiscal 2013 compared to fiscal 2012 with growth limited due to the
conversion of certain types of digital currency cards from afullretail price revenue arrangement to acommission revenue
model.
•Mobile and consumer electronics sales increased $103.4 million, or 51.6%, for fiscal 2013 compared to fiscal 2012 due
to increased growth of the mobile business within the VideoGame Brand stores and due to the Technology Brands stores
acquired or opened in the fourth quarter of fiscal 2013.
The increases described above were partially offset by the following:
•New video game software sales decreased $101.5 million, or 2.8%, for fiscal 2013 compared to fiscal 2012, 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%, for fiscal 2013 compared to fiscal
2012, 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 salesfor the53rdweek in fiscal 2012.
•Sales of video game accessories declined $51.2 million, or 8.4% for fiscal 2013 compared to fiscal 2012 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.
•Sales of other product categories decreased $103.1 million, or 19.8%, for fiscal 2013 compared to fiscal 2012, primarily
due to adecrease in sales of PC entertainment software due to strong launches of PC titles during fiscal 2012.
As apercentage 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 saleswas primarily due to the launch of the new hardware consoles in the fourthquarter of fiscal 2013.
43