GameStop, the world's largest video game retailer, today announced global sales of $2.11 billion for the third quarter of 2013 ended November 2, 2013. The 18.8% increase over the $1.77 billion in the prior year quarter is due largely to the sales of Grand Theft Auto 5 and Nintendo 2DS.
New software sales increased by 43.1% which GameStop attributed to "the strong performance of recently released new titles." What's more impressive is that new hardware sales also grew by 15.3%, thanks in large to strong Nintendo 2DS and 3DS sales. Pre-owned sales, meanwhile, were down 2%. The company's new business, mobile and digital, saw a growth in sales of 14.4% to $49.9 million and 8.6% to $137.9 million, respectively.
Overall, GameStop posted a net profit of $68.6 million for the quarter, a considerable improvement (45.3% to be exact) over the $47.2 million in the prior year quarter.
GameStop's positive quarterly results will surely boost investor confidence as we head into Q4, which will see the results of the already-launched PS4 and incoming Xbox One (due out tomorrow, Nov. 22). GameStop's fate became a topic of uncertainty following the initial reveals of the Xbox One and PS4, as Microsoft and Sony were seemingly embracing a nearly all digital future.
“Our strong third quarter sales results give us great momentum as we enter the new console cycle,” said GameStop CEO Paul Raines. “Consumer appetite for the new consoles is very strong judging by last week’s successful PS4 launch and the excitement for tonight’s Xbox One launch event. Globally, we are executing our unique playbook to maximize our position of strength.”
Both the PlayStation 4 and Xbox One remain sold out at GameStop locations and online. The retailer is expecting its fourth quarter to continue showing growth, with comparable store sales forecast to be up 2 to 9 percent, with diulted earnings per share ranging from $1.97 to $2.14.
