GameStop Announces Preliminary Sales Results for the First Nine Weeks of Fiscal 2021 Reflecting an Approximately 11% Increase Compared to the Prior Year Period

Rhea-AI Summary

GameStop Corp. (NYSE: GME) reported a preliminary 11% increase in total global sales for the nine-week period ending April 3, 2021, compared to the same period in 2020. Sales growth was bolstered by an 18% increase during March 2021. Despite ongoing challenges from COVID-19-related restrictions, the company continues its strategic store optimization, resulting in a 13% decrease in store base. This press release cautions that the sales data is preliminary and may be subject to change, emphasizing the company's adaptive strategies amidst evolving market conditions.

Positive

• Total global sales increased approximately 11% for the nine-week period ended April 3, 2021.
• Sales in March 2021 rose approximately 18% compared to March 2020.
• Despite a 13% reduction in the store base, sales performance remains strong.

Negative

• Ongoing government-mandated restrictions continue to impact operations, primarily in Europe.
• The company faces significant risks and uncertainties related to COVID-19's impact on consumer spending.

Sales for the five-week March 2021 period increased approximately 18% from prior year

GRAPEVINE, Texas, April 05, 2021 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE: GME), today announced preliminary unaudited sales results for the first quarter to date period representing the nine-weeks ended April 3, 2021, as compared to the nine weeks ended April 4, 2020.

Preliminary Sales Performance

• For the first nine-weeks of fiscal 2021, total global sales increased approximately 11% from the nine-week period ended April 4, 2020
• February: the four-week period ended February 27, 2021 total global sales increased approximately 5.3% from the four-week period ended February 29, 2020
• March: the five-week period ended April 2, 2021,total global sales increased approximately 18% from the five week period ended April 4, 2020.
  

As a reminder, during the first quarter of fiscal 2020 and due to the spread of COVID-19 around the world, the Company’s various operations across 14 countries were negatively impacted due to temporary store closures and other government mandated restrictions that resulted in limited operations. During the first nine weeks of fiscal 2021, similar government mandated restrictions resulted in limited operations, primarily in Europe, and the Company operated with an approximately 13% decrease in the store base due to its strategic store optimization efforts.

The Company’s sales are preliminary and subject to completion of the month-end and quarter-end closing process and adjustments. As the Company has not completed its month-end and first quarter fiscal 2021 close process, the sales presented in this press release may change. The preliminary sales data presented in this press release have been prepared by, and are the responsibility of, our management. The preliminary sales data has not been compiled or examined by our independent auditors nor have our independent auditors performed any procedures with respect to this data or expressed any opinion or any form of assurance on such data. In addition, the preliminary sales data is not necessarily indicative of the results to be achieved for the quarter ending May 1, 2021 or for any future period. See “Cautionary Statement Regarding Forward-Looking Statements – Safe Harbor.”

About GameStop.
GameStop, a Fortune 500 company headquartered in Grapevine, Texas, is a leading specialty retailer offering games and entertainment products through its E-Commerce properties and thousands of stores. Visit www.GameStop.com to explore our products and offerings. Follow @GameStop and @GameStopCorp on Twitter and find us on Facebook at www.facebook.com/GameStop.

Cautionary Statement Regarding Forward-Looking Statements - Safe Harbor
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current beliefs, views, estimates and expectations, including as to the Company’s industry, business strategy, goals and expectations concerning its market position, strategic and transformation initiatives, future operations, margins, profitability, comparable store growth, capital expenditures, liquidity, capital resources, expansion of technology expertise, and other financial and operating information, including expectations as to future operating profit improvement. Such statements include without limitation those about the Company’s expectations for future financial and operating results, projections, and other statements that are not historical facts. Forward-looking statements are subject to significant risks and uncertainties and actual developments, business decisions, outcomes and results may differ materially from those reflected or described in the forward-looking statements. The following factors, among others, could cause actual developments, business decisions, outcomes and results to differ materially from those reflected or described in the forward-looking statements: macroeconomic pressures, including the effects of the COVID-19 pandemic on consumer spending and the Company’s ability to keep stores open; the impact of the COVID-19 pandemic on the Company’s business and financial results; the economic conditions in the U.S. and certain international markets; the amounts devoted to strategic investments, including in E-Commerce capabilities and other business transformation initiatives, and failure to achieve anticipated profitability increases and benefits from such initiatives within the expected time-frames or at all; the cyclicality of the video game industry; the Company’s dependence on the timely delivery of new and innovative products from its vendors; the impact of technological advances in the video game industry and related changes in consumer behavior on the Company’s sales; the Company’s ability to keep pace with changing industry technology and consumer preferences; decrease in popularity of certain types of video games; the Company’s ability to react to trends in pop culture with regard to its sales of collectibles and dependence on licensed products for a substantial portion of such sales; the competitive nature of the Company’s industry, including competition from mass retailers, E-Commerce businesses, and traditional store-based retailers; the ability and willingness of the Company’s vendors to provide marketing and merchandise support at historical or anticipated levels; the Company’s ability to attract and retain executive officers, including a new chief financial officer, and other key personnel; the Company’s ability to obtain favorable terms from its current and future suppliers and vendors, including those engaged as part of the Company’s shift to E-Commerce sales; the international nature of the Company’s business; foreign currency fluctuations; changes in the Company’s global tax rate; the impact of international crises and trade restrictions and tariffs on the delivery of the Company’s products; the Company’s dependence on sales during the holiday selling season; fluctuations in the Company’s results of operations from quarter to quarter; the Company’s ability to de-densify its global store base; the Company’s ability to renew, terminate or enter into new leases on favorable terms; the adequacy of the Company’s management information systems; the Company’s reliance on centralized facilities for refurbishment of its pre-owned products; the Company’s ability to maintain security of its customer, employee or company information; potential harm to the Company’s reputation, including from cybersecurity breaches; the Company’s ability to maintain effective control over financial reporting; restrictions on the Company’s ability to purchase and sell pre-owned video games; potential future litigation and other legal proceedings; changes in accounting rules and regulations; and the Company’s ability to comply with federal, state, local and international law. Additional factors that could cause results to differ materially from those reflected or described in the forward-looking statements can be found in GameStop's Annual Report on Form 10-K for the fiscal year ended January 30, 2021 and other filings made from time to time with the SEC and available at the SEC's Internet site at http://www.sec.gov or http://investor.GameStop.com. Forward-looking statements contained in this press release speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

Contact
GameStop Corp. Investor Relations
(817) 424-2001
investorrelations@gamestop.com

FAQ

What were GameStop's sales results for the first quarter of 2021?

GameStop reported a preliminary 11% increase in total global sales for the nine-week period ending April 3, 2021.

How did March 2021 sales compare to March 2020 for GameStop?

GameStop's sales in March 2021 increased approximately 18% compared to March 2020.

What challenges is GameStop facing in 2021?

GameStop continues to face challenges from COVID-19-related restrictions affecting operations.

What is the store base reduction percentage for GameStop?

GameStop has operated with an approximately 13% decrease in its store base due to strategic store optimization efforts.