Closed 200+ Stores During Quarter
Posted by Milton Griepp on September 11, 2020 @ 1:25 am CT
The company is happy with the results of its “store de-densification” strategy, as it is seeing about 40% of the volume from closed stores moving either to neighboring stores or ecomm.
Other factors cited were a 13% reduction in days open for its stores due to pandemic-related closings, although as of August 1, the company said all of its stores are open at least for curbside, if not for in-store shopping; and depressed game sales as consumers wait for new consoles later this year. Comp store sales (accounting separately from declines due to pandemic closings) were down 12.7%.
Collectibles sales, which include tabletop games, took a big hit, down a third from $172.5 million in FQ2 2019 to $113.9 million in its Q2 2020.
Ecomm sales were up 800% from the same period a year ago. The company feels that some of those sales are not simply replacement of in-store sales but represent new sales or consumers.
The sales decline in the quarter ended August 1 was actually less than the 34% decline in the previous quarter (see “GameStop Sales Down 34%”).
GameStop lost $111.3 million in the quarter, a big improvement over the $415.3 million loss in the same quarter a year ago.
Investors didn’t like the numbers, which were considered misses on both sales and profits; the stock price declined over 15% in trading Thursday.