GameStop Reports Fourth Quarter and Fiscal Year 2024 Results

Core Insights - GameStop Corp. reported financial results for the fourth quarter and fiscal year ended February 1, 2025, showing a decline in net sales compared to the previous year, but an increase in net income for the fourth quarter [1][7][13]. Fourth Quarter Overview - Net sales for the fourth quarter were $1.283 billion, down from$1.794 billion in the same quarter last year, representing a decrease of approximately 28.5% [7][10]. - SG&A expenses decreased to $282.5 million from$359.2 million, a reduction of about 21.4% [7][11]. - Net income for the fourth quarter was $131.3 million, compared to$63.1 million in the prior year's fourth quarter, indicating a significant increase of approximately 108% [7][11]. - Adjusted EBITDA for the fourth quarter was $96.5 million, up from$88.0 million year-over-year, reflecting an increase of about 9.6% [7][30]. Full Year Overview - For the fiscal year 2024, net sales totaled $3.823 billion, down from$5.273 billion in fiscal year 2023, marking a decline of approximately 27.5% [7][13]. - SG&A expenses for the full year were $1.130 billion, down from$1.324 billion, a decrease of about 14.6% [7][13]. - The company achieved a net income of $131.3 million for fiscal year 2024, compared to$6.7 million in fiscal year 2023, representing a substantial increase [7][13]. - Adjusted EBITDA for the full year was $36.1 million, down from$64.7 million in the previous year, indicating a decline of approximately 44.3% [7][13]. Cash and Assets - At the end of the fourth quarter, cash, cash equivalents, and marketable securities amounted to $4.775 billion, reflecting a strong liquidity position [7][19]. - The company completed the divestiture of its operations in Italy and the wind-down of store operations in Germany, indicating a strategic shift in its operational focus [7][19]. Sales Mix - In the fourth quarter, hardware and accessories accounted for 56.6% of net sales, while software contributed 22.3%, and collectibles made up 21.1% [23]. - For the full year, hardware and accessories represented 54.9% of total sales, software 26.3%, and collectibles 18.8% [23].