GameStop has posted its Q3 2013 financial results and the firm reported an 18.8% increase in revenue of $2.11 billion compared to $1.77 billion year-over year. Earnings were up 45.3% to $68.6 million.
New software sales increased 43% thanks in part to Grand Theft Auto 5. New hardware sales increased 15.3% due to the release of 2DS and continued sales of 3DS. Comparable store sales were up by 20.5%.
Sales in the pre-owned sector were down 2%, while digital sales hit $137.9 million, anc increase of 8.6% year-over-year. Mobile sales were up 14.4% year-over-year to $49.9 million.
“Our strong third quarter sales results give us great momentum as we enter the new console cycle,” said GameStop CEO Paul Raines in the prepared financial statement.
“Consumer appetite for the new consoles is very strong judging by last week’s successful PS4 launch and the excitement for tonight’s Xbox One launch event. Globally, we are executing our unique playbook to maximize our position of strength.”
Despite the increase in sales and earnings, the market was disappointed in its profit forecast, causing shares in the company to fall by over 10%.
For Q4 of fiscal 2013, GameStop expects comparable store sales to range from +2.0% to +9.0%. Diluted earnings per share are expected to range from $1.97 to $2.14.
“When we start estimating console cycles, we understand that there are always allocation challenges, import challenges so we’ve tried to make what is a reasonable expectation of growth for the fourth quarter,” added Raines. “But some investors want us to be even more aggressive.”