GameStop Sees a 25 Percent Increase in Sales for Q2 2021
In terms of video game bricks-and-mortar retail outlets, there is none bigger than GameStop, especially in the US. When there aren't viral videos of GameStop employees chasing down thieves, the company is seemingly raking in the profits, even in these tumultuous times of stock shortages. Evidence shows that the gaming conglomerate is doing very well for itself in terms of profits, as it unveils its latest financial report for this quarter.
In the most recent fiscal report, GameStop is seeing significant profit increases when compared to the last quarter. According to the stats, the company generated net sales of $1.183 billion, which is a 25% increase on the last report, which showed profits of $942 million, and ends this period with $1.78 billion in "cash and restricted cash." It also shows that the company ended with "no long-term" debts aside from $47.5 million, which is linked to the French government's pandemic response.
This seems to show a similar pattern to the last financial report. Just a few months back, GameStop saw a 25% net increase for Q1 2021, with 55% of the total sales for hardware. For this quarter, it seems as though hardware and accessories accounted for 53.4% of profits, particularly for the end of July 2021, with 32.3% on software, and the rest on collectibles.
On top of an increase in overall sales, the company also said that it is expanding its brand to the coasts of the continental U.S. having just signed a lease for a new 530,000 square foot building in Nevada. Back in May, GameStop announced it was constructing a huge outlet specifically for online sales. Whether this new building in Nevada ties in with that or is something else is not made clear in the fiscal report. However, what is clear is that the company is looking to expand its network, as well as its catalog, which could link in with its recent lean towards more online sales.
GameStop has been trying to keep the gaming world supplied with new-gen consoles, given that many are finding it difficult to purchase new tech. With the deficit hitting the industry, and therefore the customers, pretty hard, company's like GameStop still seem to be going from strength to strength, especially with the global pandemic still raging on. It begs the question of just how much these huge outlets would be making if billions had not been on lockdown the last eighteen months. With people returning to some semblance of normal, it's likely that these profits are only going to increase.
Source: GameStop
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