GameStop earnings top Street, sales disappoint; post strong balance sheet
GameStop Corp.’s fourth-quarter earnings rose amid tight cost controls even as its sales continued to fall.
The struggling video game and accessories retailer reported a much stronger balance sheet. It ended the quarter with approximately $9 billion in cash, cash equivalents and marketable securities, up from $4.8 billion in the prior year quarter. The company also had bitcoin and related receivables were valued at $368.4 million at the close of the quarter.
GameStop's net income was $127.9 million for quarter ended Jan. 31, compared to $131.3 million in the year-ago period. Adjusted net income was $291.4 million, compared to $136.4 million for the prior year's fourth quarter. Adjusted earnings were $0. 49 cents per share, topping analyst estimates of $0.37 per share,
Operating income was $135.2 million, compared to $79.8 million in the prior year's fourth quarter. Adjusted operating income was $147.7 million, compared to $84.4 million last year.
Net sales fell to $1.104 billion from $1.283 billion in the prior year's fourth quarter. Analysts had expected sales of $1.47 billion.
By category, sales of hardware and accessories fell to $535.6 million from $725.8 million year over year, while software sales declined to $203.7 million from $286.2
Collectibles were a bright spot, with sales rising to $365 million from $270.6 million. The category now makes up about a third of GameStop's total sales, up 21% year over year.
In January, GameStop CEO said the company was considering a major acquisition of a publicly traded firm in the retail or consumer arena, reported The Wall Street Journal. His remarks came weeks after the company's board voted to increase Cohen’s pay package to more than $35 billion awarded entirely in stock options if he is able to increase GameStop's market capitalization to $100 billion and achieve $10 billion in "cumulative performance" EBITDA.
Full Year
The company reported net sales of $3.630 billion for fiscal year 2025, compared to $3.823 billion in fiscal year 2024. Net income was $418.4 million, compared to $131.3 million in the previous year.
Adjusted net income was $647.4 million for fiscal year 2025, compared to $131.2 million in fiscal year 2024.
