GameStop’s financial results for the third quarter of 2021 have been released. The data shows a lot of ups and downs for the company, with growth and losses across the board.
For the three-month period ending on October 30, 2021, the company reported net sales that are up by 29 percent year-on-year at $1.29 billion. For the same period in 2020, the company reported net sales of $1 billion.
$669.9 million of the total $1.29 billion, around 51 percent, was generated by hardware aisles at GameStop stores. This is an increase from the $413.4 million in the same time period last year.
However, net losses for the quarter also increased. This year they were at $105.4 million compared to the $18.8 million in 2020. It’s worth taking into account that this is better than the loss of $111 million that the company reported for Q2 2021.
GameStop has attributed the rise in sales to some newly expanded relationships with brands such as LG, Razer, Vizio, Samsung, and many more. This will include exclusivity deals on certain products, ensuring that GameStop benefits from the sales of that hardware because fans of the brands want that specific product.
GameStop has had a rocky few years after almost falling apart completely. However, it’s clear to see that its plans to streamline its business by closing some stores and focusing on providing a better experience in the ones it keeps open has worked.
The business is also working to increase its online business. This is surely where the bulk of the company’s sales are coming from because the pandemic has created new spending trends in customers so that they now focus on buying for delivery rather than heading into a store for the physical retail experience.
Looking at next year, the company won’t be able to lean as hard on new hardware because production limitations will result in even the Nintendo Switch becoming hard to get hold of. However, if the company keeps doing what it’s been doing, it should start to see sales improve over time.