GameStop Reports Surprise Profit, First in Over Two Years
Fourth Quarter Net Sales Decline, but Cost Cuts Drive Profitability
GRAPEVINE, Texas, March 21, 2023 /PRNewswire/ --
GameStop Corp. (NYSE: GME) today reported its financial results for the fourth quarter and full year ended January 28, 2023. Net sales for the fourth quarter of fiscal 2023 were $5.273 billion, a 10.8% decrease compared to $5.927 billion in the fourth quarter of fiscal 2022. The decline in net sales was primarily driven by a decrease in sales of new video game software and hardware, and a decrease in pre-owned video game sales.
Despite the decline in net sales, GameStop reported a net income of $17.2 million for the fourth quarter of fiscal 2023, compared to a net loss of $149.0 million in the fourth quarter of fiscal 2022. This marks the company's first quarterly profit since the first quarter of fiscal 2021.
The improvement in profitability was primarily driven by a decrease in operating expenses, which declined by 8.3% to $1.062 billion in the fourth quarter of fiscal 2023 from $1.157 billion in the fourth quarter of fiscal 2022. The decrease in operating expenses was driven by lower store operating expenses, lower technology and development expenses, and lower selling, general and administrative expenses.
For the full year, GameStop reported net sales of $7.285 billion, a 2.1% decrease compared to $7.466 billion in fiscal 2022. The decline in net sales was primarily driven by a decrease in sales of video game software, offset by an increase in sales of video game hardware and collectibles.
GameStop's net loss for the full year was $395.1 million, compared to a net income of $618.7 million in fiscal 2022. The decrease in net income was primarily driven by the decline in net sales and an increase in operating expenses.
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