GameStop 2015 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2015 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 109

  • 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

We are pleased to report that 2015 proved to
be another successful year of transformation for
GameStop, which has been an integral part of our
company’s culture since our humble beginnings as
a primarily mall-based retailer of educational and
personal computing software operating under the
brand names of Software Etc. and Babbage’s.
Our global team of associates, working under the
banners of GameStop, EB Games, Micromania, Spring
Mobile, Cricket Wireless, Simply Mac, ThinkGeek,
Kongregate and Game Informer, continued to deliver on
our promise of making the most popular technologies
aordable and simple. Their relentless eorts helped
us deliver on our 2015 strategic objectives: embracing
and driving a high rate of change; maximizing our core
video game business; rapidly expanding our Technology
Brands businesses; and delivering shareholder return.
The transformation strategy we launched in 2013 has
already made significant strides. In just two short years,
we are no longer just GameStop, the video game brand.
We are now a global family of specialty retail brands.
We responded to digital gaming market trends with
sales of downloadable content, full-game downloads
and digital currency, delivering more than $1 billion in
digital receipts in 2015. We once again captured the
No. 1 global retail position in video gaming. We provided
our 46 million global PowerUp Rewards members
access to unique promotional and trade-in programs
and exclusive oers that helped drive our market share
growth. We continued to expand our trades and pre-
owned business by oering customers an even broader
assortment of value products, including the $1 billion
in trade credits we issued. Through our omni-channel
business we provided our customers convenience by
enabling them to choose how they want to shop and
purchase video game merchandise, either in one of
our stores, online, via mobile phone or using one of
our newest channels — pick-up-at-store, web-in-store,
or ship-from-store. Combined, all these eorts helped
drive, on average, approximately $176,000 in store
contribution per GameStop store,
a nearly 15% increase from 2014.
Our Technology Brands grew at a
rate that exceeded our projections
during 2015. Collectively, these
businesses delivered more than
$500 million in sales. Today, we
now operate more than
1,000 stores nationwide —
890 AT&T Wireless and 70 Cricket
Wireless (under our Spring Mobile
subsidiary), and 76 Simply Mac (Apple) stores. These
businesses are on track to deliver more than $1.5 billion
in revenue and approximately $200 million in operating
earnings by 2019. We will continue to expand our
national retail footprint in this space.
We acquired the very popular ThinkGeek.com brand
during 2015. This acquisition helped expand our
diversified revenue stream by adding the No. 1 brand
in the fast-growing collectibles category to our mix
of global retail concepts. It also gave us access to
a portfolio of established, premier, hard-to-secure
licenses. We continued the expansion of our highly
profitable global collectibles, or “loot,” segment. This
represents our fastest-growing business, delivering
TO OUR SHAREHOLDERS
We are excited about the future of GameStop. We are
committed to evolving from a video games only retailer
to a family of specialty retail brands that operates
multiple billion-dollar businesses.
22015 ANNUAL REPORT