GameStop Corp, the world's largest retailer of video games and gaming consoles, reported better-than-expected quarterly profit and sales on Thursday, driven by robust demand for the Nintendo Switch console. "Our Q1 performance reflects the strength of our customer value proposition and continued momentum in the execution of our strategy".
Bartel attributed part of the decline in USA same-store sales to a tight supply in the Switch in the first quarter.
GameStop has reported its first quarter earnings, and despite a slight slump on the US side, the company had a 3.8% overall growth over the same quarter past year, with $2.05 billion in sales. Quarterly sales were up a whopping 39.1% to $114.5 million, while Technology Brand sales jumped 21.5% to $201.4 million.
The 1.2 million sales figure is very important not only for GameStop, but also for Nintendo. GameStop predicts collectibles sales will grow by 30 percent to 40 percent this year and that the Nintendo Switch will continue to drive hardware growth through Q2.
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And in case you were curious, Bartel says a lot of GameStop customers are trading in old game hardware towards the purchase of a new Switch - and a good chunk of those trade-ins are Wii U consoles.
"We are all veterans of the Wii launch. The fact that this is ahead of the Wii launch is significant", GameStop CFO Rob Llyod told investors at yesterday's conference call with investors, according to Gamasutra. The demand for the Switch is still huge and is probably going to elevate if games keep coming out by the most popular franchises of Nintendo. He also said that "there is a contest among all the retailers, online and in store, with our good friends at Nintendo".
"This is one of the strongest and most successful gaming console launches for GameStop in the last several years", Gamestop Senior Director of Merchandising Eric Bright said back in March. GameStop believes that the cause for this loss is the lack of popular titles in the first quarter of 2017.