Tue, Sep. 29, 10:59 AM
Fri, Sep. 11, 5:27 PM
- Videogame sales slipped in August, despite the "annual Madden," with new physical games and hardware down 2% to $548M, according to NPD Group.
- That's due to a bigger decline in software sales, though hardware slipped as well. Game sales fell 10% to $207.9M on tough comps against last year's Diablo III console launch and Sony's The Last of Us.
- Spending on hardware dropped a comparatively lighter 2% to $190.5M. Accessory sales rose, however, up 12% to $150M. Current-gen consoles rose to 68% of software sales from the prior month's 61%, according to Piper Jaffray.
- Madden NFL 16 (EA +0.3%) was the unsurprising leader in software for August after its late-month release, ahead of a pair of Microsoft (MSFT +0.4%) titles, Minecraft and Gears of War: Ultimate Edition.
- “New physical software sales for [Xbox One and PS4] consoles, up 34%, did not offset the 51% decline in [last] generation console sales as well as the 24% drop in portable software sales,” said NPD analyst Liam Callahan.
- Piper's Michael Olson reiterated Overweight ratings on Activision Blizzard (ATVI +0.3%), EA and Take-Two (TTWO +0.1%), as well as on GameStop (GME +1%). "We expect that 2015 and 2016 will be the equivalent to 2007 and 2008 during the prior console cycle," he writes; "both were years that experienced significant industry software growth, following several years of decline or limited growth in the space."
- Meanwhile, Sony (SNE +0.9%) confirmed its PlayStation 4 outsold competing hardware from Microsoft and Nintendo (OTCPK:NTDOY -1.5%) yet again in August.
Fri, Aug. 28, 9:31 AM
- Benchmark downgraded GameStop (GME -3.2%) to a Sell rating after all of the retailer's segments missed its estimates for Q2.
- The investment firm is the latest to call into question the core business model of GameStop.
- "We believe the console will complete the turn to digital within the next 5 years," warns Benchmark.
- Benchmark has a $29.76 on GME.
- Some bulls defended the stock today post-earnings. Wedbush raised its PT to $55, while Telsey Advisory is in at $47. During the earnings call, AT&T-branded stores and the integration of ThinkGeek were highlighted by GameStop execs as two earnings drivers.
- Earnings call transcript
Thu, Aug. 27, 4:24 PM
- GameStop (NYSE:GME) report same-store sales rose 8.1% in Q2, aided by a beneficial sales mix.
- The U.S. comp was up 10.8% during the period.
- Gross profit rate +110 bps to 32.9%.
- New video game hardware and software both fell as a percentage of total sales.
- Guidance: GameStop sees Q3 EPS of $0.53-$0.60 vs. $0.59 consensus and full-year EPS of $3.66-$3.86 vs. $3.88 consensus.
- Previously: GameStop beats by $0.06, beats on revenue (Aug. 27)
- GME +4.33% AH to $48.20.
Thu, Aug. 27, 4:15 PM
Wed, Aug. 26, 5:35 PM
Tue, Aug. 25, 5:35 PM
- investors should stick with "market darlings" - the 25 stocks that had performed the best during the six months before a market pullback - according to the analyst team at RBC.
- The firm notes that although many recent winners are leading the market lower, the extent of the underperformance is just 1%; it also says investing in the group following sharp market pullbacks is a winning strategy over the ensuing week, month and six months.
- RBC's 25 market darlings are AET, ALTR, AMZN, AIZ, CVC, CI, CAG, EA, EQIX, EXPE, GME, GOOGL, HAS, HCA, MNST, NFLX, NKE, PRGO, REGN, SBUX, TSO, TWC, TSS, UA, UHS
Fri, Aug. 14, 8:10 AM| Fri, Aug. 14, 8:10 AM | Comment!
Fri, Jul. 17, 9:25 AM
Fri, Jun. 26, 3:00 PM
- Tiburon Research has an interesting breakdown of how retail store sales fared on a wider "two-year stack" at comparable stores.
- Q1 2-year comps that impressed were from Michael Kors (NYSE:KORS) +20.4%, Ulta Salon (NASDAQ:ULTA) +20.1%, and GameStop (NYSE:GME) +14.4%. J.C. Penney (NYSE:JCP) was +10.8% off an easy 2-year compare.
- The story is different at Coach (NYSE:COH) -44%, Vera Bradley (NASDAQ:VRA) -24.7%, Aeropostale (NYSE:ARO) -24.0%, Cabela's (NYSE:CAB) -23%, and Staples (NASDAQ:SPLS) -7%.
- TIburon Research comparable-store sales table
Mon, Jun. 15, 3:15 PM
- GameStop (GME -1.1%) trades lower following an announcement by Microsoft of backwards compatibility for the Xbox One console.
- The development could impact used game sales.
- Shares of GME were in positive territory before the Microsoft news.
- Also in the backdrop on GameStop is a recent channel check by Cowen which showed a 25% Y/Y drop in physical videogames sales (console and handheld) during May. The timing of certain releases impacted the large swing.
Tue, Jun. 2, 2:46 PM
Fri, May 29, 9:14 AM
Thu, May 28, 5:23 PM
- GameStop (NYSE:GME) is up 3.9% in postmarket trading after reporting Q1 profits that grew 15%, easily beating expectations, on revenues boosted by dozens of new stores and strong digital pickup.
- Same-store sales were up 8.6%. In the prior-year quarter, same-store sales had risen 5.8%.
- Revenues of $2.06B were up 3.2%, but up 8.1% in constant currency. New software sales rose 9.6% (15.8% in constant currency).
- Diversifying its offering was paying benefits: Non-GAAP digital receipts rose a healthy 17.2% to $222.2M. Sales in mobile and consumer electronics rose 33.9% to $136.8M.
- GameStop bought back $46.4M of stock in Q1, and has just over $400M left on its current repurchase authorization.
- The company provided in-line guidance for Q2 EPS of $0.21-$0.25, and raised guidance for full-year EPS to $3.63-$3.83 to account for a reduction in shares (which is on the low side of an expected $3.84 EPS). It expects comparable-store sales should range from flat to +3% for Q2, and +1% to +6% for 2015.
- Press release
Thu, May 28, 4:07 PM
Wed, May 27, 5:35 PM
GME vs. ETF Alternatives
Gamestop Corp is a multichannel video game retailer. It sells new and pre-owned video game hardware, physical and digital video game software, accessories, as well as PC entertainment software, new and pre-owned mobile and consumer electronics products.
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