August 27, 2014, 12:12 PM

Diversified web sales grow 49% for GameStop in Q2

Pick up in-store revenue grew 141% for the quarter.

Diversified web sales, including mobile commerce, web-in-store, pickup in-store, and e-commerce grew, 49.3% at GameStop Corp. for the second quarter of fiscal 2014.

For the quarter ended August 2, GameStop, No. 54 in the 2014 Internet Retailer Top 500 Guide reported:

  • Diversified web sales (which GameStop refers to as multichannel sales), including mobile commerce, web-in-store, pickup in-store, and e-commerce, increased 49.3% in Q2.
  • Total sales increased 25.4% to $1.73 billion from $1.38 billion.
  • Digital content sales, including video games and downloadable content, increased 5.9% to $52.3 million from $49.4 million in the second quarter of 2013.
  • Comparable-store sales, which do include e-commerce, grew 21.9%.
  • Net earnings were $24.6 million compared with net earnings of $10.5 million.
  • The web accounted for 3.0% of total sales compared with 3.6% in the prior year.

“Leading that growth was our pick up in store business,” Mike Hogan, EVP of strategic business and brand development, told Wall Street analysts in an earnings call last week, according to a transcript from Seeking Alpha. “Pick up in store grew plus-141% for the quarter. This reinforces consumers’ desire for the convenience of web shopping, combined with the GameStop in-store experience.”

Multichannel revenue growth also applied to the company’s emerging international business. “Investments in our multichannel strategy continue to pay off as our international e-commerce business entered into its fourth consecutive year of double-digit growth, increasing by more than 46% versus prior year,” said Mike Mauler, EVP of international. “This growth was driven by an expanded product selection and an ever-increasing number of customers utilizing cross-channel purchasing features such as web [orders] in store and pick up in store.”

For the first half of the fiscal year, GameStop reported:

  • Total sales increased 14.8% to $3.73 billion from $3.25 billion.
  • Digital content sales increased 1.6% to $88.1 million from $86.7 million in the first half of 2013.
  • Net earnings were $92.6 million compared with a $65.1 million.
  • The web accounted for 2.4% of total sales compared with 2.7% in the prior year.
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