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Share Name | Share Symbol | Market | Type |
---|---|---|---|
GameStop Corp Holding Company | NYSE:GME | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.42 | -2.55% | 16.05 | 17.40 | 13.6202 | 14.99 | 48,018,669 | 00:59:45 |
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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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FOR THE QUARTERLY PERIOD ENDED OCTOBER 29, 2016
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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|
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FOR THE TRANSITION PERIOD FROM
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TO
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Delaware
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20-2733559
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(State or other jurisdiction of
incorporation or organization)
|
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(I.R.S. Employer
Identification No.)
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|
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625 Westport Parkway,
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76051
(Zip Code)
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Grapevine, Texas
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||
(Address of principal executive offices)
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Large accelerated filer
x
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Accelerated filer ☐
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Non-accelerated filer ☐
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Smaller reporting company ☐
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(Do not check if a smaller reporting company)
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Page No.
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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October 29,
2016 |
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October 31,
2015 |
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January 30,
2016 |
||||||
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(In millions, except par value per share)
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||||||||||
ASSETS
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||||||||||||
Current assets:
|
|
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|
|
||||||
Cash and cash equivalents
|
|
$
|
356.1
|
|
|
$
|
186.2
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|
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$
|
450.4
|
|
Receivables, net
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|
181.1
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|
|
185.5
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|
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176.5
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|||
Merchandise inventories, net
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|
1,633.6
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1,856.3
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|
|
1,163.0
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|
|||
Deferred income taxes — current
|
|
—
|
|
|
65.9
|
|
|
—
|
|
|||
Prepaid expenses and other current assets
|
|
188.0
|
|
|
199.2
|
|
|
147.6
|
|
|||
Total current assets
|
|
2,358.8
|
|
|
2,493.1
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|
|
1,937.5
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|
|||
Property and equipment:
|
|
|
|
|
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|
||||||
Land
|
|
17.9
|
|
|
17.6
|
|
|
17.3
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|
|||
Buildings and leasehold improvements
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|
726.9
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|
|
647.0
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|
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668.2
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|
|||
Fixtures and equipment
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|
925.1
|
|
|
890.8
|
|
|
874.6
|
|
|||
Total property and equipment
|
|
1,669.9
|
|
|
1,555.4
|
|
|
1,560.1
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|
|||
Less accumulated depreciation
|
|
1,166.8
|
|
|
1,077.9
|
|
|
1,075.6
|
|
|||
Net property and equipment
|
|
503.1
|
|
|
477.5
|
|
|
484.5
|
|
|||
Deferred income taxes — noncurrent
|
|
39.0
|
|
|
26.8
|
|
|
39.0
|
|
|||
Goodwill
|
|
1,726.8
|
|
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1,479.2
|
|
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1,476.7
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|
|||
Other intangible assets, net
|
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527.7
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291.4
|
|
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330.4
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|||
Other noncurrent assets
|
|
75.2
|
|
|
62.1
|
|
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62.2
|
|
|||
Total noncurrent assets
|
|
2,871.8
|
|
|
2,337.0
|
|
|
2,392.8
|
|
|||
Total assets
|
|
$
|
5,230.6
|
|
|
$
|
4,830.1
|
|
|
$
|
4,330.3
|
|
|
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||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||||||
Current liabilities:
|
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|
|
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||||||
Accounts payable
|
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$
|
1,242.6
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|
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$
|
1,461.1
|
|
|
$
|
631.9
|
|
Accrued liabilities
|
|
877.8
|
|
|
876.4
|
|
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1,041.0
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|
|||
Income taxes payable
|
|
30.7
|
|
|
33.3
|
|
|
121.1
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|
|||
Current portion of debt
|
|
—
|
|
|
0.9
|
|
|
0.4
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|||
Total current liabilities
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|
2,151.1
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|
|
2,371.7
|
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1,794.4
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|||
Deferred income taxes
|
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30.1
|
|
|
96.0
|
|
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29.6
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|
|||
Long-term debt, net
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814.3
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345.1
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345.4
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|||
Other long-term liabilities
|
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111.0
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|
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75.7
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|
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79.9
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|||
Total long-term liabilities
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955.4
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|
|
516.8
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454.9
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|||
Total liabilities
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3,106.5
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2,888.5
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2,249.3
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Commitments and contingencies (Note 7)
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||||||
Stockholders’ equity:
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|
||||||
Preferred stock — 5.0 shares authorized; no shares issued or outstanding
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—
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—
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—
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|||
Class A common stock — $.001 par value; 300.0 shares authorized; 102.6, 104.9 and 103.3 shares issued and outstanding
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0.1
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0.1
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0.1
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|||
Additional paid-in capital
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—
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—
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—
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|||
Accumulated other comprehensive loss
|
|
(45.7
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)
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|
(61.3
|
)
|
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(88.8
|
)
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|||
Retained earnings
|
|
2,169.7
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2,002.8
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2,169.7
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|||
Total stockholders’ equity
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2,124.1
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1,941.6
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2,081.0
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|||
Total liabilities and stockholders’ equity
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$
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5,230.6
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$
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4,830.1
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$
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4,330.3
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13 Weeks Ended
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39 Weeks Ended
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||||||||||||
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October 29,
2016 |
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October 31,
2015 |
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October 29,
2016 |
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October 31,
2015 |
||||||||
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(In millions, except per share data)
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||||||||||||||
Net sales
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$
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1,959.2
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$
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2,016.3
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$
|
5,562.5
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$
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5,838.8
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Cost of sales
|
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1,251.0
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1,360.7
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3,561.1
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|
|
3,963.7
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|
||||
Gross profit
|
|
708.2
|
|
|
655.6
|
|
|
2,001.4
|
|
|
1,875.1
|
|
||||
Selling, general and administrative expenses
|
|
567.1
|
|
|
525.5
|
|
|
1,606.3
|
|
|
1,495.6
|
|
||||
Depreciation and amortization
|
|
42.3
|
|
|
39.4
|
|
|
124.0
|
|
|
113.2
|
|
||||
Operating earnings
|
|
98.8
|
|
|
90.7
|
|
|
271.1
|
|
|
266.3
|
|
||||
Interest income
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.3
|
)
|
||||
Interest expense
|
|
14.8
|
|
|
6.5
|
|
|
39.7
|
|
|
17.8
|
|
||||
Earnings before income tax expense
|
|
84.0
|
|
|
84.2
|
|
|
231.9
|
|
|
248.8
|
|
||||
Income tax expense
|
|
33.2
|
|
|
28.3
|
|
|
87.4
|
|
|
93.8
|
|
||||
Net income
|
|
$
|
50.8
|
|
|
$
|
55.9
|
|
|
$
|
144.5
|
|
|
$
|
155.0
|
|
Basic net income per common share
|
|
$
|
0.49
|
|
|
$
|
0.53
|
|
|
$
|
1.39
|
|
|
$
|
1.45
|
|
Diluted net income per common share
|
|
$
|
0.49
|
|
|
$
|
0.53
|
|
|
$
|
1.39
|
|
|
$
|
1.45
|
|
Dividends per common share
|
|
$
|
0.37
|
|
|
$
|
0.36
|
|
|
$
|
1.11
|
|
|
$
|
1.08
|
|
Weighted average shares of common stock outstanding — basic
|
|
103.7
|
|
|
105.4
|
|
|
103.8
|
|
|
106.6
|
|
||||
Weighted average shares of common stock outstanding — diluted
|
|
104.0
|
|
|
106.1
|
|
|
104.2
|
|
|
107.2
|
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
|
|
October 29,
2016 |
|
October 31,
2015 |
|
October 29,
2016 |
|
October 31,
2015 |
||||||||
|
|
(In millions)
|
||||||||||||||
Net income
|
|
$
|
50.8
|
|
|
$
|
55.9
|
|
|
$
|
144.5
|
|
|
$
|
155.0
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
|
(6.9
|
)
|
|
(5.9
|
)
|
|
43.1
|
|
|
(35.9
|
)
|
||||
Total comprehensive income
|
|
$
|
43.9
|
|
|
$
|
50.0
|
|
|
$
|
187.6
|
|
|
$
|
119.1
|
|
|
|
Class A
Common Stock
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Shares
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Retained
Earnings
|
|
Total
|
|||||||||||
|
|
(In millions)
|
|||||||||||||||||||||
Balance at January 31, 2016
|
|
103.3
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
(88.8
|
)
|
|
$
|
2,169.7
|
|
|
$
|
2,081.0
|
|
Net income for the 39 weeks ended October 29, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144.5
|
|
|
144.5
|
|
|||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43.1
|
|
|
—
|
|
|
43.1
|
|
|||||
Dividends
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(117.0
|
)
|
|
(117.0
|
)
|
|||||
Stock-based compensation expense
|
|
—
|
|
|
—
|
|
|
17.4
|
|
|
—
|
|
|
—
|
|
|
17.4
|
|
|||||
Repurchase of common shares
|
|
(1.4
|
)
|
|
—
|
|
|
(8.5
|
)
|
|
—
|
|
|
(27.5
|
)
|
|
(36.0
|
)
|
|||||
Exercise of stock options and issuance of shares upon vesting of restricted stock grants (including tax deficiency of $0.4)
|
|
0.7
|
|
|
—
|
|
|
(8.9
|
)
|
|
—
|
|
|
—
|
|
|
(8.9
|
)
|
|||||
Balance at October 29, 2016
|
|
102.6
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
(45.7
|
)
|
|
$
|
2,169.7
|
|
|
$
|
2,124.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Dividends declared per common share were
$1.11
in the
39 weeks ended October 29, 2016
.
|
|
|
Class A
Common Stock
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Shares
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Retained
Earnings
|
|
Total
|
|||||||||||
|
|
(In millions)
|
|||||||||||||||||||||
Balance at February 1, 2015
|
|
107.7
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
(25.4
|
)
|
|
$
|
2,093.0
|
|
|
$
|
2,067.7
|
|
Net income for the 39 weeks ended October 30, 2015
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
155.0
|
|
|
155.0
|
|
|||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35.9
|
)
|
|
—
|
|
|
(35.9
|
)
|
|||||
Dividends
(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(116.9
|
)
|
|
(116.9
|
)
|
|||||
Stock-based compensation expense
|
|
—
|
|
|
—
|
|
|
24.7
|
|
|
—
|
|
|
—
|
|
|
24.7
|
|
|||||
Repurchase of common shares
|
|
(3.6
|
)
|
|
—
|
|
|
(23.8
|
)
|
|
—
|
|
|
(128.3
|
)
|
|
(152.1
|
)
|
|||||
Exercise of stock options and issuance of shares upon vesting of restricted stock grants (including tax benefit of $6.9)
|
|
0.8
|
|
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|||||
Balance at October 31, 2015
|
|
104.9
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
(61.3
|
)
|
|
$
|
2,002.8
|
|
|
$
|
1,941.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Dividends declared per common share were
$1.08
in the
39 weeks ended October 31, 2015
.
|
|
|
39 Weeks Ended
|
||||||
|
|
October 29,
2016 |
|
October 31,
2015 |
||||
|
|
(In millions)
|
||||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income
|
|
$
|
144.5
|
|
|
$
|
155.0
|
|
Adjustments to reconcile net income to net cash flows used in operating activities:
|
|
|
|
|
||||
Depreciation and amortization (including amounts in cost of sales)
|
|
125.0
|
|
|
114.5
|
|
||
Stock-based compensation expense
|
|
17.4
|
|
|
24.7
|
|
||
Excess tax deficiencies (benefits) related to stock-based awards
|
|
0.4
|
|
|
(6.9
|
)
|
||
Loss on disposal of property and equipment
|
|
4.6
|
|
|
4.5
|
|
||
Other
|
|
18.7
|
|
|
8.0
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Receivables, net
|
|
(3.6
|
)
|
|
(66.4
|
)
|
||
Merchandise inventories
|
|
(482.9
|
)
|
|
(723.1
|
)
|
||
Prepaid expenses and other current assets
|
|
(17.2
|
)
|
|
(22.3
|
)
|
||
Prepaid income taxes and income taxes payable
|
|
(135.2
|
)
|
|
(17.4
|
)
|
||
Accounts payable and accrued liabilities
|
|
458.6
|
|
|
725.0
|
|
||
Changes in other long-term liabilities
|
|
1.3
|
|
|
(7.5
|
)
|
||
Net cash flows provided by operating activities
|
|
131.6
|
|
|
188.1
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Purchase of property and equipment
|
|
(105.8
|
)
|
|
(129.4
|
)
|
||
Acquisitions, net of cash acquired of $0.1 and $13.9 million, respectively
|
|
(441.1
|
)
|
|
(204.3
|
)
|
||
Other
|
|
5.4
|
|
|
(4.0
|
)
|
||
Net cash flows used in investing activities
|
|
(541.5
|
)
|
|
(337.7
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Repurchase of common shares
|
|
(43.3
|
)
|
|
(150.5
|
)
|
||
Dividends paid
|
|
(117.8
|
)
|
|
(115.1
|
)
|
||
Proceeds from senior notes
|
|
475.0
|
|
|
—
|
|
||
Repayments of acquisition-related debt
|
|
(0.2
|
)
|
|
—
|
|
||
Borrowings from the revolver
|
|
510.0
|
|
|
403.0
|
|
||
Repayments of revolver borrowings
|
|
(510.0
|
)
|
|
(403.0
|
)
|
||
Payments of financing costs
|
|
(8.1
|
)
|
|
—
|
|
||
Issuance of common stock, net of share repurchases for withholdings taxes
|
|
(8.4
|
)
|
|
(0.6
|
)
|
||
Excess tax (deficiencies) benefits related to stock-based awards
|
|
(0.4
|
)
|
|
6.9
|
|
||
Net cash flows provided by (used in) financing activities
|
|
296.8
|
|
|
(259.3
|
)
|
||
Exchange rate effect on cash and cash equivalents
|
|
18.8
|
|
|
(15.0
|
)
|
||
Net decrease in cash and cash equivalents
|
|
(94.3
|
)
|
|
(423.9
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
450.4
|
|
|
610.1
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
356.1
|
|
|
$
|
186.2
|
|
1.
|
General Information
|
2.
|
Acquisitions
|
Assets acquired
|
|
||
Merchandise inventories
|
$
|
13.1
|
|
Prepaid expenses and other current assets
|
0.2
|
|
|
Property and equipment
|
23.9
|
|
|
Goodwill
|
238.9
|
|
|
Other intangible asset — dealer agreements
|
163.0
|
|
|
Other noncurrent assets
|
6.7
|
|
|
Total assets acquired
|
445.8
|
|
|
Liabilities assumed
|
|
||
Accounts payable
|
9.2
|
|
|
Accrued liabilities
|
0.2
|
|
|
Total liabilities assumed
|
9.4
|
|
|
|
|
||
Total estimated purchase price
|
$
|
436.4
|
|
3.
|
Stock-Based Compensation
|
|
|
39 Weeks Ended October 29, 2016
|
|
39 Weeks Ended October 31, 2015
|
||||||||||
|
|
Quantity
|
|
Weighted Average
Grant Date Fair
Value
|
|
Quantity
|
|
Weighted Average
Grant Date Fair
Value
|
||||||
|
|
(In thousands, except per share data)
|
||||||||||||
Restricted stock awards – time-vested
|
|
594
|
|
|
$
|
30.20
|
|
|
457
|
|
|
$
|
40.42
|
|
Restricted stock awards – performance-based
|
|
213
|
|
|
30.50
|
|
|
189
|
|
|
40.16
|
|
||
Total stock-based awards
|
|
807
|
|
|
|
|
646
|
|
|
|
4.
|
Computation of Net Income per Common Share
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
|
|
October 29,
2016 |
|
October 31, 2015
|
|
October 29,
2016 |
|
October 31,
2015 |
||||||||
|
|
(In millions, except per share data)
|
||||||||||||||
Net income
|
|
$
|
50.8
|
|
|
$
|
55.9
|
|
|
$
|
144.5
|
|
|
$
|
155.0
|
|
Basic weighted average common shares outstanding
|
|
103.7
|
|
|
105.4
|
|
|
103.8
|
|
|
106.6
|
|
||||
Dilutive effect of stock options and restricted stock awards
(1)
|
|
0.3
|
|
|
0.7
|
|
|
0.4
|
|
|
0.6
|
|
||||
Diluted weighted average common shares outstanding
|
|
104.0
|
|
|
106.1
|
|
|
104.2
|
|
|
107.2
|
|
||||
Net income per common share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.49
|
|
|
$
|
0.53
|
|
|
$
|
1.39
|
|
|
$
|
1.45
|
|
Diluted
|
|
$
|
0.49
|
|
|
$
|
0.53
|
|
|
$
|
1.39
|
|
|
$
|
1.45
|
|
(1)
|
Excludes
1.2 million
,
0.9 million
,
1.3 million
, and
0.9 million
stock-based awards for the
13 weeks ended October 29, 2016
,
13 weeks ended October 31, 2015
,
39 weeks ended October 29, 2016
, and the
39 weeks ended October 31, 2015
, respectively, because their effects were antidilutive.
|
5.
|
Fair Value Measurements and Financial Instruments
|
|
|
October 29, 2016
|
||||||
|
|
Level 2
|
|
Level 3
|
||||
Assets
|
|
|
|
|
||||
Foreign currency contracts
|
|
|
|
|
||||
Other current assets
|
|
$
|
16.7
|
|
|
$
|
—
|
|
Other noncurrent assets
|
|
0.2
|
|
|
—
|
|
||
Company-owned life insurance
(1)
|
|
10.3
|
|
|
—
|
|
||
Total assets
|
|
$
|
27.2
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
||||
Foreign currency contracts
|
|
|
|
|
||||
Accrued liabilities
|
|
$
|
8.3
|
|
|
$
|
—
|
|
Nonqualified deferred compensation
(2)
|
|
1.0
|
|
|
—
|
|
||
Contingent consideration
(3)
|
|
—
|
|
|
43.2
|
|
||
Total liabilities
|
|
$
|
9.3
|
|
|
$
|
43.2
|
|
|
|
October 31, 2015
|
||||||
|
|
Level 2
|
|
Level 3
|
||||
Assets
|
|
|
|
|
||||
Foreign currency contracts
|
|
|
|
|
||||
Other current assets
|
|
$
|
42.9
|
|
|
$
|
—
|
|
Other noncurrent assets
|
|
4.0
|
|
|
—
|
|
||
Company-owned life insurance
(1)
|
|
9.0
|
|
|
—
|
|
||
Total assets
|
|
$
|
55.9
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
||||
Foreign currency contracts
|
|
|
|
|
||||
Accrued liabilities
|
|
$
|
35.2
|
|
|
$
|
—
|
|
Other long-term liabilities
|
|
2.6
|
|
|
—
|
|
||
Nonqualified deferred compensation
(2)
|
|
1.2
|
|
|
—
|
|
||
Total liabilities
|
|
$
|
39.0
|
|
|
$
|
—
|
|
|
|
January 30, 2016
|
||||||
|
|
Level 2
|
|
Level 3
|
||||
Assets
|
|
|
|
|
||||
Foreign currency contracts
|
|
|
|
|
||||
Other current assets
|
|
$
|
40.6
|
|
|
$
|
—
|
|
Other noncurrent assets
|
|
0.1
|
|
|
—
|
|
||
Company-owned life insurance
(1)
|
|
10.1
|
|
|
—
|
|
||
Total assets
|
|
$
|
50.8
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
||||
Foreign currency contracts
|
|
|
|
|
||||
Accrued liabilities
|
|
$
|
32.3
|
|
|
$
|
—
|
|
Other long-term liabilities
|
|
0.5
|
|
|
—
|
|
||
Nonqualified deferred compensation
(2)
|
|
1.1
|
|
|
|
|
||
Total liabilities
|
|
$
|
33.9
|
|
|
$
|
—
|
|
(3)
|
Current portion of
$20 million
recognized in accrued liabilities and noncurrent portion of
$23.2 million
recognized in other long-term liabilities in our unaudited condensed consolidated balance sheet.
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||
|
|
October 29,
2016 |
|
October 31,
2015 |
|
October 29,
2016 |
|
October 31,
2015 |
||||||||
Gains (losses) on the change in fair value of derivative instruments
|
|
$
|
5.0
|
|
|
$
|
(2.9
|
)
|
|
$
|
10.5
|
|
|
$
|
(4.1
|
)
|
Gains (losses) on the remeasurement of related intercompany loans and foreign currency assets and liabilities
|
|
(3.1
|
)
|
|
3.7
|
|
|
(6.4
|
)
|
|
6.5
|
|
||||
Total
|
|
$
|
1.9
|
|
|
$
|
0.8
|
|
|
$
|
4.1
|
|
|
$
|
2.4
|
|
6.
|
Debt
|
|
October 29, 2016
|
|
October 31, 2015
|
|
January 30, 2016
|
||||||
2019 Senior Notes principal amount
|
$
|
350.0
|
|
|
$
|
350.0
|
|
|
$
|
350.0
|
|
2021 Senior Notes principal amount
|
475.0
|
|
|
—
|
|
|
—
|
|
|||
Less: Unamortized debt financing costs
(1)
|
(10.7
|
)
|
|
(4.9
|
)
|
|
(4.6
|
)
|
|||
Long-term debt, net
|
$
|
814.3
|
|
|
$
|
345.1
|
|
|
$
|
345.4
|
|
(1)
|
Includes the reclassification of debt financing costs from "Prepaids and other current assets" and “Other noncurrent assets” as a result of the Company adopting ASU 2015-03. See Note 1.
|
7.
|
Commitments and Contingencies
|
8.
|
Significant Products
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||||||||||||||
|
|
October 29, 2016
|
|
October 31, 2015
|
|
October 29, 2016
|
|
October 31, 2015
|
||||||||||||||||||||
|
|
Net
Sales
|
|
Percent
of Total
|
|
Net
Sales
|
|
Percent
of Total
|
|
Net
Sales
|
|
Percent
of Total
|
|
Net
Sales
|
|
Percent
of Total
|
||||||||||||
Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New video game hardware
(1)
|
|
$
|
284.4
|
|
|
14.5
|
%
|
|
$
|
358.1
|
|
|
17.8
|
%
|
|
$
|
813.7
|
|
|
14.6
|
%
|
|
$
|
1,122.7
|
|
|
19.2
|
%
|
New video game software
|
|
616.6
|
|
|
31.5
|
%
|
|
674.5
|
|
|
33.5
|
%
|
|
1,566.0
|
|
|
28.2
|
%
|
|
1,755.3
|
|
|
30.1
|
%
|
||||
Pre-owned and value video game products
|
|
470.0
|
|
|
24.0
|
%
|
|
502.2
|
|
|
24.9
|
%
|
|
1,573.5
|
|
|
28.3
|
%
|
|
1,645.4
|
|
|
28.2
|
%
|
||||
Video game accessories
|
|
156.0
|
|
|
8.0
|
%
|
|
138.0
|
|
|
6.8
|
%
|
|
438.2
|
|
|
7.9
|
%
|
|
414.3
|
|
|
7.1
|
%
|
||||
Digital
|
|
44.7
|
|
|
2.3
|
%
|
|
40.0
|
|
|
2.0
|
%
|
|
123.8
|
|
|
2.2
|
%
|
|
127.6
|
|
|
2.2
|
%
|
||||
Technology Brands
(2)
|
|
216.3
|
|
|
11.0
|
%
|
|
140.1
|
|
|
6.9
|
%
|
|
558.0
|
|
|
10.0
|
%
|
|
356.1
|
|
|
6.1
|
%
|
||||
Collectibles
|
|
109.4
|
|
|
5.6
|
%
|
|
79.7
|
|
|
3.9
|
%
|
|
281.7
|
|
|
5.1
|
%
|
|
143.5
|
|
|
2.4
|
%
|
||||
Other
(3)
|
|
61.8
|
|
|
3.1
|
%
|
|
83.7
|
|
|
4.2
|
%
|
|
207.6
|
|
|
3.7
|
%
|
|
273.9
|
|
|
4.7
|
%
|
||||
Total
|
|
$
|
1,959.2
|
|
|
100.0
|
%
|
|
$
|
2,016.3
|
|
|
100.0
|
%
|
|
$
|
5,562.5
|
|
|
100.0
|
%
|
|
$
|
5,838.8
|
|
|
100.0
|
%
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||||||||||||||
|
|
October 29, 2016
|
|
October 31, 2015
|
|
October 29, 2016
|
|
October 31, 2015
|
||||||||||||||||||||
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
||||||||||||
Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New video game hardware
(1)
|
|
$
|
37.3
|
|
|
13.1
|
%
|
|
$
|
38.6
|
|
|
10.8
|
%
|
|
$
|
95.6
|
|
|
11.7
|
%
|
|
$
|
109.2
|
|
|
9.7
|
%
|
New video game software
|
|
150.0
|
|
|
24.3
|
%
|
|
165.8
|
|
|
24.6
|
%
|
|
376.0
|
|
|
24.0
|
%
|
|
415.3
|
|
|
23.7
|
%
|
||||
Pre-owned and value video game products
|
|
218.0
|
|
|
46.4
|
%
|
|
231.2
|
|
|
46.0
|
%
|
|
725.2
|
|
|
46.1
|
%
|
|
775.0
|
|
|
47.1
|
%
|
||||
Video game accessories
|
|
49.6
|
|
|
31.8
|
%
|
|
50.4
|
|
|
36.5
|
%
|
|
152.4
|
|
|
34.8
|
%
|
|
151.9
|
|
|
36.7
|
%
|
||||
Digital
|
|
35.0
|
|
|
78.3
|
%
|
|
31.5
|
|
|
78.8
|
%
|
|
104.7
|
|
|
84.6
|
%
|
|
99.7
|
|
|
78.1
|
%
|
||||
Technology Brands
(2)
|
|
159.6
|
|
|
73.8
|
%
|
|
85.8
|
|
|
61.2
|
%
|
|
380.0
|
|
|
68.1
|
%
|
|
195.8
|
|
|
55.0
|
%
|
||||
Collectibles
|
|
39.7
|
|
|
36.3
|
%
|
|
30.1
|
|
|
37.8
|
%
|
|
103.0
|
|
|
36.6
|
%
|
|
56.1
|
|
|
39.1
|
%
|
||||
Other
(3)
|
|
19.0
|
|
|
30.7
|
%
|
|
22.2
|
|
|
26.5
|
%
|
|
64.5
|
|
|
31.1
|
%
|
|
72.1
|
|
|
26.3
|
%
|
||||
Total
|
|
$
|
708.2
|
|
|
36.1
|
%
|
|
$
|
655.6
|
|
|
32.5
|
%
|
|
$
|
2,001.4
|
|
|
36.0
|
%
|
|
$
|
1,875.1
|
|
|
32.1
|
%
|
(1)
|
Includes sales of hardware bundles, in which physical hardware and digital or physical software are sold together as a single SKU.
|
(2)
|
Includes mobile and consumer electronics sold through our Technology Brands segment, which includes the operations of our Spring Mobile managed AT&T and Cricket Wireless branded stores and our Simply Mac business.
|
(3)
|
Includes sales of PC entertainment software, interactive game figures, strategy guides, mobile and consumer electronics sold through our Video Game Brands segments, and revenues from PowerUp Pro loyalty members receiving
Game Informer
magazine in print form.
|
9.
|
Segment Information
|
13 weeks ended October 29, 2016
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Technology Brands
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
1,195.2
|
|
|
$
|
86.8
|
|
|
$
|
139.4
|
|
|
$
|
321.5
|
|
|
$
|
216.3
|
|
|
$
|
1,959.2
|
|
Operating earnings
|
|
59.1
|
|
|
3.9
|
|
|
3.5
|
|
|
8.8
|
|
|
23.5
|
|
|
98.8
|
|
||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
(14.8
|
)
|
|||||||||||
Earnings before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
84.0
|
|
13 weeks ended October 31, 2015
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Technology Brands
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
1,327.3
|
|
|
$
|
98.0
|
|
|
$
|
126.4
|
|
|
$
|
324.5
|
|
|
$
|
140.1
|
|
|
$
|
2,016.3
|
|
Operating earnings
|
|
62.6
|
|
|
6.9
|
|
|
6.4
|
|
|
8.3
|
|
|
6.5
|
|
|
90.7
|
|
||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
(6.5
|
)
|
|||||||||||
Earnings before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
84.2
|
|
39 weeks ended October 29, 2016
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Technology Brands
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
3,586.5
|
|
|
$
|
231.2
|
|
|
$
|
376.6
|
|
|
$
|
810.2
|
|
|
$
|
558.0
|
|
|
$
|
5,562.5
|
|
Operating earnings (loss)
|
|
204.7
|
|
|
8.9
|
|
|
7.0
|
|
|
(5.7
|
)
|
|
56.2
|
|
|
271.1
|
|
||||||
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
0.5
|
|
|||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
(39.7
|
)
|
|||||||||||
Earnings before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
231.9
|
|
39 weeks ended October 31, 2015
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Technology Brands
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
4,007.4
|
|
|
$
|
265.9
|
|
|
$
|
368.9
|
|
|
$
|
840.5
|
|
|
$
|
356.1
|
|
|
$
|
5,838.8
|
|
Operating earnings (loss)
|
|
235.0
|
|
|
12.4
|
|
|
12.6
|
|
|
(3.8
|
)
|
|
10.1
|
|
|
266.3
|
|
||||||
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
0.3
|
|
|||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
(17.8
|
)
|
|||||||||||
Earnings before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
248.8
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||||||||||||||
|
|
October 29, 2016
|
|
October 31, 2015
|
|
October 29, 2016
|
|
October 31, 2015
|
||||||||||||||||||||
|
|
Dollars
|
|
Percent
|
|
Dollars
|
|
Percent
|
|
Dollars
|
|
Percent
|
|
Dollars
|
|
Percent
|
||||||||||||
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
|
$
|
1,959.2
|
|
|
100.0
|
%
|
|
$
|
2,016.3
|
|
|
100.0
|
%
|
|
$
|
5,562.5
|
|
|
100.0
|
%
|
|
$
|
5,838.8
|
|
|
100.0
|
%
|
Cost of sales
|
|
1,251.0
|
|
|
63.9
|
|
|
1,360.7
|
|
|
67.5
|
|
|
3,561.1
|
|
|
64.0
|
|
|
3,963.7
|
|
|
67.9
|
|
||||
Gross profit
|
|
708.2
|
|
|
36.1
|
|
|
655.6
|
|
|
32.5
|
|
|
2,001.4
|
|
|
36.0
|
|
|
1,875.1
|
|
|
32.1
|
|
||||
Selling, general and administrative expenses
|
|
567.1
|
|
|
28.9
|
|
|
525.5
|
|
|
26.1
|
|
|
1,606.3
|
|
|
28.9
|
|
|
1,495.6
|
|
|
25.6
|
|
||||
Depreciation and amortization
|
|
42.3
|
|
|
2.2
|
|
|
39.4
|
|
|
1.9
|
|
|
124.0
|
|
|
2.2
|
|
|
113.2
|
|
|
1.9
|
|
||||
Operating earnings
|
|
98.8
|
|
|
5.0
|
|
|
90.7
|
|
|
4.5
|
|
|
271.1
|
|
|
4.9
|
|
|
266.3
|
|
|
4.6
|
|
||||
Interest expense, net
|
|
14.8
|
|
|
0.7
|
|
|
6.5
|
|
|
0.3
|
|
|
39.2
|
|
|
0.7
|
|
|
17.5
|
|
|
0.3
|
|
||||
Earnings before income tax expense
|
|
84.0
|
|
|
4.3
|
|
|
84.2
|
|
|
4.2
|
|
|
231.9
|
|
|
4.2
|
|
|
248.8
|
|
|
4.3
|
|
||||
Income tax expense
|
|
33.2
|
|
|
1.7
|
|
|
28.3
|
|
|
1.4
|
|
|
87.4
|
|
|
1.6
|
|
|
93.8
|
|
|
1.6
|
|
||||
Net income
|
|
$
|
50.8
|
|
|
2.6
|
%
|
|
$
|
55.9
|
|
|
2.8
|
%
|
|
$
|
144.5
|
|
|
2.6
|
%
|
|
$
|
155.0
|
|
|
2.7
|
%
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||||||||||||||
|
|
October 29, 2016
|
|
October 31, 2015
|
|
October 29, 2016
|
|
October 31, 2015
|
||||||||||||||||||||
|
|
Net
Sales
|
|
Percent
of Total
|
|
Net
Sales
|
|
Percent
of Total
|
|
Net
Sales
|
|
Percent
of Total
|
|
Net
Sales
|
|
Percent
of Total
|
||||||||||||
Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New video game hardware
(1)
|
|
$
|
284.4
|
|
|
14.5
|
%
|
|
$
|
358.1
|
|
|
17.8
|
%
|
|
$
|
813.7
|
|
|
14.6
|
%
|
|
$
|
1,122.7
|
|
|
19.2
|
%
|
New video game software
|
|
616.6
|
|
|
31.5
|
%
|
|
674.5
|
|
|
33.5
|
%
|
|
1,566.0
|
|
|
28.2
|
%
|
|
1,755.3
|
|
|
30.1
|
%
|
||||
Pre-owned and value video game products
|
|
470.0
|
|
|
24.0
|
%
|
|
502.2
|
|
|
24.9
|
%
|
|
1,573.5
|
|
|
28.3
|
%
|
|
1,645.4
|
|
|
28.2
|
%
|
||||
Video game accessories
|
|
156.0
|
|
|
8.0
|
%
|
|
138.0
|
|
|
6.8
|
%
|
|
438.2
|
|
|
7.9
|
%
|
|
414.3
|
|
|
7.1
|
%
|
||||
Digital
|
|
44.7
|
|
|
2.3
|
%
|
|
40.0
|
|
|
2.0
|
%
|
|
123.8
|
|
|
2.2
|
%
|
|
127.6
|
|
|
2.2
|
%
|
||||
Technology Brands
(2)
|
|
216.3
|
|
|
11.0
|
%
|
|
140.1
|
|
|
6.9
|
%
|
|
558.0
|
|
|
10.0
|
%
|
|
356.1
|
|
|
6.1
|
%
|
||||
Collectibles
|
|
109.4
|
|
|
5.6
|
%
|
|
79.7
|
|
|
3.9
|
%
|
|
281.7
|
|
|
5.1
|
%
|
|
143.5
|
|
|
2.4
|
%
|
||||
Other
(3)
|
|
61.8
|
|
|
3.1
|
%
|
|
83.7
|
|
|
4.2
|
%
|
|
207.6
|
|
|
3.7
|
%
|
|
273.9
|
|
|
4.7
|
%
|
||||
Total
|
|
$
|
1,959.2
|
|
|
100.0
|
%
|
|
$
|
2,016.3
|
|
|
100.0
|
%
|
|
$
|
5,562.5
|
|
|
100.0
|
%
|
|
$
|
5,838.8
|
|
|
100.0
|
%
|
|
|
13 Weeks Ended
|
|
39 Weeks Ended
|
||||||||||||||||||||||||
|
|
October 29, 2016
|
|
October 31, 2015
|
|
October 29, 2016
|
|
October 31, 2015
|
||||||||||||||||||||
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
||||||||||||
Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New video game hardware
(1)
|
|
$
|
37.3
|
|
|
13.1
|
%
|
|
$
|
38.6
|
|
|
10.8
|
%
|
|
$
|
95.6
|
|
|
11.7
|
%
|
|
$
|
109.2
|
|
|
9.7
|
%
|
New video game software
|
|
150.0
|
|
|
24.3
|
%
|
|
165.8
|
|
|
24.6
|
%
|
|
376.0
|
|
|
24.0
|
%
|
|
415.3
|
|
|
23.7
|
%
|
||||
Pre-owned and value video game products
|
|
218.0
|
|
|
46.4
|
%
|
|
231.2
|
|
|
46.0
|
%
|
|
725.2
|
|
|
46.1
|
%
|
|
775.0
|
|
|
47.1
|
%
|
||||
Video game accessories
|
|
49.6
|
|
|
31.8
|
%
|
|
50.4
|
|
|
36.5
|
%
|
|
152.4
|
|
|
34.8
|
%
|
|
151.9
|
|
|
36.7
|
%
|
||||
Digital
|
|
35.0
|
|
|
78.3
|
%
|
|
31.5
|
|
|
78.8
|
%
|
|
104.7
|
|
|
84.6
|
%
|
|
99.7
|
|
|
78.1
|
%
|
||||
Technology Brands
(2)
|
|
159.6
|
|
|
73.8
|
%
|
|
85.8
|
|
|
61.2
|
%
|
|
380.0
|
|
|
68.1
|
%
|
|
195.8
|
|
|
55.0
|
%
|
||||
Collectibles
|
|
39.7
|
|
|
36.3
|
%
|
|
30.1
|
|
|
37.8
|
%
|
|
103.0
|
|
|
36.6
|
%
|
|
56.1
|
|
|
39.1
|
%
|
||||
Other
(3)
|
|
19.0
|
|
|
30.7
|
%
|
|
22.2
|
|
|
26.5
|
%
|
|
64.5
|
|
|
31.1
|
%
|
|
72.1
|
|
|
26.3
|
%
|
||||
Total
|
|
$
|
708.2
|
|
|
36.1
|
%
|
|
$
|
655.6
|
|
|
32.5
|
%
|
|
$
|
2,001.4
|
|
|
36.0
|
%
|
|
$
|
1,875.1
|
|
|
32.1
|
%
|
(1)
|
Includes sales of hardware bundles, in which physical hardware and digital or physical software are sold together as a single SKU.
|
(2)
|
Includes mobile and consumer electronics sold through our Technology Brands segment, which includes the operations of our Spring Mobile managed AT&T and Cricket Wireless branded stores and our Simply Mac business.
|
(3)
|
Includes sales of PC entertainment software, interactive game figures, strategy guides, mobile and consumer electronics sold through our Video Game Brands segments, and revenues from PowerUp Pro loyalty members receiving
Game Informer
magazine in print form.
|
|
|
13 Weeks Ended
|
|
Change
|
|||||||||||
|
|
October 29, 2016
|
|
October 31, 2015
|
|
$
|
|
%
|
|||||||
|
|
(Dollars in millions)
|
|
|
|||||||||||
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|||||||
Net sales
|
|
$
|
1,959.2
|
|
|
$
|
2,016.3
|
|
|
$
|
(57.1
|
)
|
|
(2.8
|
)%
|
Cost of sales
|
|
1,251.0
|
|
|
1,360.7
|
|
|
(109.7
|
)
|
|
(8.1
|
)
|
|||
Gross profit
|
|
708.2
|
|
|
655.6
|
|
|
52.6
|
|
|
8.0
|
|
|||
Selling, general and administrative expenses
|
|
567.1
|
|
|
525.5
|
|
|
41.6
|
|
|
7.9
|
|
|||
Depreciation and amortization
|
|
42.3
|
|
|
39.4
|
|
|
2.9
|
|
|
7.4
|
|
|||
Operating earnings
|
|
98.8
|
|
|
90.7
|
|
|
8.1
|
|
|
8.9
|
|
|||
Interest expense, net
|
|
14.8
|
|
|
6.5
|
|
|
8.3
|
|
|
127.7
|
|
|||
Earnings before income tax expense
|
|
84.0
|
|
|
84.2
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|||
Income tax expense
|
|
33.2
|
|
|
28.3
|
|
|
4.9
|
|
|
17.3
|
|
|||
Net income
|
|
$
|
50.8
|
|
|
$
|
55.9
|
|
|
$
|
(5.1
|
)
|
|
(9.1
|
)%
|
|
|
13 Weeks Ended
|
|
Change
|
|||||||||||
|
|
October 29, 2016
|
|
October 31, 2015
|
|
$
|
|
%
|
|||||||
|
|
(Dollars in millions)
|
|
|
|||||||||||
Net Sales:
|
|
|
|
|
|
|
|
|
|||||||
New video game hardware
(1)
|
|
$
|
284.4
|
|
|
$
|
358.1
|
|
|
$
|
(73.7
|
)
|
|
(20.6
|
)%
|
New video game software
|
|
616.6
|
|
|
674.5
|
|
|
(57.9
|
)
|
|
(8.6
|
)
|
|||
Pre-owned and value video game products
|
|
470.0
|
|
|
502.2
|
|
|
(32.2
|
)
|
|
(6.4
|
)
|
|||
Video game accessories
|
|
156.0
|
|
|
138.0
|
|
|
18.0
|
|
|
13.0
|
|
|||
Digital
|
|
44.7
|
|
|
40.0
|
|
|
4.7
|
|
|
11.8
|
|
|||
Technology Brands
(2)
|
|
216.3
|
|
|
140.1
|
|
|
76.2
|
|
|
54.4
|
|
|||
Collectibles
|
|
109.4
|
|
|
79.7
|
|
|
29.7
|
|
|
37.3
|
|
|||
Other
(3)
|
|
61.8
|
|
|
83.7
|
|
|
(21.9
|
)
|
|
(26.2
|
)
|
|||
Total
|
|
$
|
1,959.2
|
|
|
$
|
2,016.3
|
|
|
$
|
(57.1
|
)
|
|
(2.8
|
)%
|
|
|
13 Weeks Ended
|
|
Change
|
|||||||||||
|
|
October 29, 2016
|
|
October 31, 2015
|
|
$
|
|
%
|
|||||||
|
|
(Dollars in millions)
|
|
|
|||||||||||
Gross Profit:
|
|
|
|
|
|
|
|
|
|||||||
New video game hardware
(1)
|
|
$
|
37.3
|
|
|
$
|
38.6
|
|
|
$
|
(1.3
|
)
|
|
(3.4
|
)%
|
New video game software
|
|
150.0
|
|
|
165.8
|
|
|
(15.8
|
)
|
|
(9.5
|
)
|
|||
Pre-owned and value video game products
|
|
218.0
|
|
|
231.2
|
|
|
(13.2
|
)
|
|
(5.7
|
)
|
|||
Video game accessories
|
|
49.6
|
|
|
50.4
|
|
|
(0.8
|
)
|
|
(1.6
|
)
|
|||
Digital
|
|
35.0
|
|
|
31.5
|
|
|
3.5
|
|
|
11.1
|
|
|||
Technology Brands
(2)
|
|
159.6
|
|
|
85.8
|
|
|
73.8
|
|
|
86.0
|
|
|||
Collectibles
|
|
39.7
|
|
|
30.1
|
|
|
9.6
|
|
|
31.9
|
|
|||
Other
(3)
|
|
19.0
|
|
|
22.2
|
|
|
(3.2
|
)
|
|
(14.4
|
)
|
|||
Total
|
|
$
|
708.2
|
|
|
$
|
655.6
|
|
|
$
|
52.6
|
|
|
8.0
|
%
|
(1)
|
Includes sales of hardware bundles, in which physical hardware and digital or physical software are sold together as a single SKU.
|
(2)
|
Includes mobile and consumer electronics sold through our Technology Brands segment, which includes the operations of our Spring Mobile managed AT&T and Cricket Wireless branded stores and our Simply Mac business.
|
•
|
New video game hardware sales decreased
$73.7 million
, or
20.6%
, for the
13 weeks ended October 29, 2016
compared to the
13 weeks ended October 31, 2015
, primarily due to a decline in the quantity of hardware units sold combined with a reduction in selling price of certain models as the console cycle matures.
|
•
|
New video game software sales decreased
$57.9 million
, or
8.6%
, for the
13 weeks ended October 29, 2016
compared to the
13 weeks ended October 31, 2015
, due to stronger performance of new title releases in the prior year quarter.
|
•
|
Pre-owned and value video game product sales decreased
$32.2 million
, or
6.4%
, for the
13 weeks ended October 29, 2016
compared to the
13 weeks ended October 31, 2015
, primarily due to the decrease in store traffic as a result of weaker new release titles and hardware unit sales declines in the current year quarter.
|
•
|
Other sales decreased
$21.9 million
, or
26.2%
, for the
13 weeks ended October 29, 2016
compared to the
13 weeks ended October 31, 2015
, due to the decline in sales of interactive game figures.
|
•
|
Technology Brands sales increased
$76.2 million
, or
54.4%
, for the
13 weeks ended October 29, 2016
compared to the
13 weeks ended October 31, 2015
, primarily due to the acquisition and opening of stores within the Technology Brands segment.
|
•
|
Collectibles sales increased
$29.7 million
, or
37.3%
, for the
13 weeks ended October 29, 2016
compared to the
13 weeks ended October 31, 2015
, due to the growth of collectibles sales in our Video Game Brands stores and the growth in the number of stand-alone collectibles stores.
|
•
|
Video game accessories sales increased
$18.0 million
, or
13.0%
, for the
13 weeks ended October 29, 2016
compared to the
13 weeks ended October 31, 2015
, primarily driven by the release of the PlayStation VR in October 2016.
|
•
|
Digital sales increased
$4.7 million
, or
11.8%
, for the
13 weeks ended October 29, 2016
compared to the
13 weeks ended October 31, 2015
, primarily driven by growth in console digital sales and mobile gaming sales through Kongregate.
|
•
|
Gross profit as a percentage of sales in Technology Brands increased to
73.8%
in the
13 weeks ended October 29, 2016
from
61.2%
in the
13 weeks ended October 31, 2015
, due to the growth in the number of Spring Mobile stores which carry higher margins than the other businesses inside Technology Brands.
|
•
|
Gross profit as a percentage of sales on new video game hardware increased to
13.1%
in the
13 weeks ended October 29, 2016
from
10.8%
in the
13 weeks ended October 31, 2015
, due to a higher mix of hardware warranty sales in the current year quarter.
|
•
|
Gross profit as a percentage of sales on video game accessories decreased to
31.8%
in the
13 weeks ended October 29, 2016
from
36.5%
in the
13 weeks ended October 31, 2015
, due to the introduction of the PlayStation VR in the current quarter, which carries a lower gross margin than other accessory products.
|
•
|
Gross profit as a percentage of sales on collectibles decreased to
36.3%
in the
13 weeks ended October 29, 2016
from
37.8%
in the
13 weeks ended October 31, 2015
, due to higher fulfillment costs associated with the ThinkGeek.com business.
|
|
|
39 Weeks Ended
|
|
Change
|
|||||||||||
|
|
October 29, 2016
|
|
October 31, 2015
|
|
$
|
|
%
|
|||||||
|
|
(Dollars in millions)
|
|
|
|||||||||||
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|||||||
Net sales
|
|
$
|
5,562.5
|
|
|
$
|
5,838.8
|
|
|
$
|
(276.3
|
)
|
|
(4.7
|
)%
|
Cost of sales
|
|
3,561.1
|
|
|
3,963.7
|
|
|
(402.6
|
)
|
|
(10.2
|
)%
|
|||
Gross profit
|
|
2,001.4
|
|
|
1,875.1
|
|
|
126.3
|
|
|
6.7
|
%
|
|||
Selling, general and administrative expenses
|
|
1,606.3
|
|
|
1,495.6
|
|
|
110.7
|
|
|
7.4
|
%
|
|||
Depreciation and amortization
|
|
124.0
|
|
|
113.2
|
|
|
10.8
|
|
|
9.5
|
%
|
|||
Operating earnings
|
|
271.1
|
|
|
266.3
|
|
|
4.8
|
|
|
1.8
|
%
|
|||
Interest expense, net
|
|
39.2
|
|
|
17.5
|
|
|
21.7
|
|
|
124.0
|
%
|
|||
Earnings before income tax expense
|
|
231.9
|
|
|
248.8
|
|
|
(16.9
|
)
|
|
(6.8
|
)%
|
|||
Income tax expense
|
|
87.4
|
|
|
93.8
|
|
|
(6.4
|
)
|
|
(6.8
|
)%
|
|||
Net income
|
|
$
|
144.5
|
|
|
$
|
155.0
|
|
|
$
|
(10.5
|
)
|
|
(6.8
|
)%
|
|
|
39 Weeks Ended
|
|
Change
|
|||||||||||
|
|
October 29, 2016
|
|
October 31, 2015
|
|
$
|
|
%
|
|||||||
|
|
(Dollars in millions)
|
|
|
|||||||||||
Net Sales:
|
|
|
|
|
|
|
|
|
|||||||
New video game hardware
(1)
|
|
$
|
813.7
|
|
|
$
|
1,122.7
|
|
|
$
|
(309.0
|
)
|
|
(27.5
|
)%
|
New video game software
|
|
1,566.0
|
|
|
1,755.3
|
|
|
(189.3
|
)
|
|
(10.8
|
)
|
|||
Pre-owned and value video game products
|
|
1,573.5
|
|
|
1,645.4
|
|
|
(71.9
|
)
|
|
(4.4
|
)
|
|||
Video game accessories
|
|
438.2
|
|
|
414.3
|
|
|
23.9
|
|
|
5.8
|
|
|||
Digital
|
|
123.8
|
|
|
127.6
|
|
|
(3.8
|
)
|
|
(3.0
|
)
|
|||
Technology Brands
(2)
|
|
558.0
|
|
|
356.1
|
|
|
201.9
|
|
|
56.7
|
|
|||
Collectibles
|
|
281.7
|
|
|
143.5
|
|
|
138.2
|
|
|
96.3
|
|
|||
Other
(3)
|
|
207.6
|
|
|
273.9
|
|
|
(66.3
|
)
|
|
(24.2
|
)
|
|||
Total
|
|
$
|
5,562.5
|
|
|
$
|
5,838.8
|
|
|
$
|
(276.3
|
)
|
|
(4.7
|
)%
|
|
|
39 Weeks Ended
|
|
Change
|
|||||||||||
|
|
October 29, 2016
|
|
October 31, 2015
|
|
$
|
|
%
|
|||||||
|
|
(Dollars in millions)
|
|
|
|||||||||||
Gross Profit:
|
|
|
|
|
|
|
|
|
|||||||
New video game hardware
(1)
|
|
$
|
95.6
|
|
|
$
|
109.2
|
|
|
$
|
(13.6
|
)
|
|
(12.5
|
)%
|
New video game software
|
|
376.0
|
|
|
415.3
|
|
|
(39.3
|
)
|
|
(9.5
|
)
|
|||
Pre-owned and value video game products
|
|
725.2
|
|
|
775.0
|
|
|
(49.8
|
)
|
|
(6.4
|
)
|
|||
Video game accessories
|
|
152.4
|
|
|
151.9
|
|
|
0.5
|
|
|
0.3
|
|
|||
Digital
|
|
104.7
|
|
|
99.7
|
|
|
5.0
|
|
|
5.0
|
|
|||
Technology Brands
(2)
|
|
380.0
|
|
|
195.8
|
|
|
184.2
|
|
|
94.1
|
|
|||
Collectibles
|
|
103.0
|
|
|
56.1
|
|
|
46.9
|
|
|
83.6
|
|
|||
Other
(3)
|
|
64.5
|
|
|
72.1
|
|
|
(7.6
|
)
|
|
(10.5
|
)
|
|||
Total
|
|
$
|
2,001.4
|
|
|
$
|
1,875.1
|
|
|
$
|
126.3
|
|
|
6.7
|
%
|
(1)
|
Includes sales of hardware bundles, in which physical hardware and digital or physical software are sold together as a single SKU.
|
(2)
|
Includes mobile and consumer electronics sold through our Technology Brands segment, which includes the operations of our Spring Mobile managed AT&T and Cricket Wireless branded stores and our Simply Mac business.
|
•
|
New video game hardware sales decreased
$309.0 million
, or
27.5%
, for the
39 weeks ended October 29, 2016
compared to the
39 weeks ended October 31, 2015
, primarily due to a decline in the quantity of hardware units sold combined with a reduction in selling price of certain models as the console cycle matures.
|
•
|
New video game software sales decreased
$189.3 million
, or
10.8%
, for the
39 weeks ended October 29, 2016
compared to the
39 weeks ended October 31, 2015
, primarily due to stronger performance of new title releases in the prior year period.
|
•
|
Pre-owned and value video game product sales decreased
$71.9 million
, or
4.4%
, for the
39 weeks ended October 29, 2016
compared to the
39 weeks ended October 31, 2015
, primarily due to the decrease in store traffic as a result of weaker new release titles and hardware unit sales declines in the current year period.
|
•
|
Other sales decreased
$66.3 million
, or
24.2%
, for the
39 weeks ended October 29, 2016
compared to the
39 weeks ended October 31, 2015
, due to the decline in sales of interactive game figures.
|
•
|
Technology Brands sales increased
$201.9 million
, or
56.7%
, for the
39 weeks ended October 29, 2016
compared to the
39 weeks ended October 31, 2015
, primarily due to the acquisition and opening of stores within the Technology Brands segment.
|
•
|
Collectibles sales increased
$138.2 million
, or
96.3%
, for the
39 weeks ended October 29, 2016
compared to the
39 weeks ended October 31, 2015
, due to the acquisition of ThinkGeek in July 2015, the growth of collectibles sales in our Video Game Brands stores and the growth in the number of stand-alone collectibles stores.
|
•
|
Video game accessories increased
$23.9 million
, or
5.8%
, for the
39 weeks ended October 29, 2016
compared to the
39 weeks ended October 31, 2015
, primarily due to the release of the PlayStation VR in October 2016.
|
•
|
Gross profit as a percentage of sales in Technology Brands increased to
68.1%
in the
39 weeks ended October 29, 2016
from
55.0%
in the
39 weeks ended October 31, 2015
, due to the growth in the number of Spring Mobile stores which carry higher margins than the other businesses inside Technology Brands.
|
•
|
Gross profit as a percentage of sales on digital increased to
84.6%
in the
39 weeks ended October 29, 2016
from
78.1%
in the
39 weeks ended October 31, 2015
, primarily due to a change in the mix of sales and the related commissions on the digital products we sold.
|
•
|
Gross profit as a percentage of sales on collectibles decreased to
36.6%
in the
39 weeks ended October 29, 2016
from
39.1%
in the
39 weeks ended October 31, 2015
, due to the addition of the ThinkGeek.com business in July 2015 which carries higher fulfillment costs compared to our in-store sales.
|
•
|
Gross profit as a percentage of sales on pre-owned and value video game products decreased to
46.1%
in the
39 weeks ended October 29, 2016
from
47.1%
in the
39 weeks ended October 31, 2015
, due to a greater mix of sales of current generation products, which carry lower gross margin than previous generation products.
|
As of and for the 13 weeks ended October 29, 2016
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Technology Brands
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
1,195.2
|
|
|
$
|
86.8
|
|
|
$
|
139.4
|
|
|
$
|
321.5
|
|
|
$
|
216.3
|
|
|
$
|
1,959.2
|
|
Operating earnings
|
|
$
|
59.1
|
|
|
$
|
3.9
|
|
|
$
|
3.5
|
|
|
$
|
8.8
|
|
|
$
|
23.5
|
|
|
$
|
98.8
|
|
Segment operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Store count
|
|
3,955
|
|
|
322
|
|
|
457
|
|
|
1,283
|
|
|
1,569
|
|
|
7,586
|
|
||||||
Comparable store sales
(1)
|
|
(8.4
|
)%
|
|
(11.4
|
)%
|
|
0.1
|
%
|
|
(0.5
|
)%
|
|
n/a
|
|
|
(6.5
|
)%
|
As of and for the 13 weeks ended October 31, 2015
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Technology Brands
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
1,327.3
|
|
|
$
|
98.0
|
|
|
$
|
126.4
|
|
|
$
|
324.5
|
|
|
$
|
140.1
|
|
|
$
|
2,016.3
|
|
Operating earnings
|
|
$
|
62.6
|
|
|
$
|
6.9
|
|
|
$
|
6.4
|
|
|
$
|
8.3
|
|
|
$
|
6.5
|
|
|
$
|
90.7
|
|
Segment operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Store count
|
|
4,066
|
|
|
325
|
|
|
434
|
|
|
1,297
|
|
|
834
|
|
|
6,956
|
|
||||||
Comparable store sales
(1)
|
|
(1.7
|
)%
|
|
3.4
|
%
|
|
6.7
|
%
|
|
(2.8
|
)%
|
|
n/a
|
|
|
(1.1
|
)%
|
As of and for the 39 Weeks Ended October 29, 2016
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Technology Brands
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
3,586.5
|
|
|
$
|
231.2
|
|
|
$
|
376.6
|
|
|
$
|
810.2
|
|
|
$
|
558.0
|
|
|
$
|
5,562.5
|
|
Operating earnings (loss)
|
|
$
|
204.7
|
|
|
$
|
8.9
|
|
|
$
|
7.0
|
|
|
$
|
(5.7
|
)
|
|
$
|
56.2
|
|
|
$
|
271.1
|
|
Segment operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Store count
|
|
3,955
|
|
|
322
|
|
|
457
|
|
|
1,283
|
|
|
1,569
|
|
|
7,586
|
|
||||||
Comparable store sales
(1)
|
|
(8.9
|
)%
|
|
(9.2
|
)%
|
|
(1.4
|
)%
|
|
(4.0
|
)%
|
|
n/a
|
|
|
(7.6
|
)%
|
As of and for the 39 Weeks Ended October 31, 2015
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Technology Brands
|
|
Consolidated
|
||||||||||||
Net sales
|
|
$
|
4,007.4
|
|
|
$
|
265.9
|
|
|
$
|
368.9
|
|
|
$
|
840.5
|
|
|
$
|
356.1
|
|
|
$
|
5,838.8
|
|
Operating earnings (loss)
|
|
$
|
235.0
|
|
|
$
|
12.4
|
|
|
$
|
12.6
|
|
|
$
|
(3.8
|
)
|
|
$
|
10.1
|
|
|
$
|
266.3
|
|
Segment operating data:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Store count
|
|
4,066
|
|
|
325
|
|
|
434
|
|
|
1,297
|
|
|
834
|
|
|
6,956
|
|
||||||
Comparable store sales
(1)
|
|
5.8
|
%
|
|
7.8
|
%
|
|
9.4
|
%
|
|
(1.3
|
)%
|
|
n/a
|
|
|
5.0
|
%
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
|
Total
Number of
Shares
Purchased
|
|
Average
Price Paid per
Share
|
|
Total Number of
Shares
Purchased as
Part of Publicly
Announced Plans
or Programs
|
|
Approximate Dollar
Value of Shares that
May Yet Be Purchased
Under the Plans or
Programs (1)
|
||||||
|
|
|
|
|
|
|
|
(In millions)
|
||||||
July 31 through August 27, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
245.3
|
|
August 28 through October 1, 2016
|
|
650,332
|
|
|
$
|
27.68
|
|
|
650,332
|
|
|
$
|
227.3
|
|
October 2 through October 29, 2016
|
|
701,533
|
|
|
$
|
25.66
|
|
|
701,533
|
|
|
$
|
209.3
|
|
Total
|
|
1,351,865
|
|
|
$
|
26.63
|
|
|
1,351,865
|
|
|
|
(1)
|
In November 2014, we publicly announced that our Board of Directors authorized a share repurchase program allowing our management to repurchase up to $500 million of our Class A Common Stock. As of
October 29, 2016
, we had $209.3 million remaining to repurchase shares under the authorized repurchase program which has no expiration date.
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
|
GAMESTOP CORP.
|
||
|
|
|
|
|
By:
|
|
/s/ R
OBERT
A. L
LOYD
|
|
|
|
Robert A. Lloyd
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
Date: December 6, 2016
|
|
|
|
|
|
||
|
GAMESTOP CORP.
|
||
|
|
|
|
|
By:
|
|
/s/ T
ROY
W. C
RAWFORD
|
|
|
|
Troy W. Crawford
|
|
|
|
Senior Vice President and Chief Accounting Officer
|
|
|
|
(Principal Accounting Officer)
|
|
|
|
|
Date: December 6, 2016
|
|
|
|
Exhibit
Number
|
|
Description
|
31.1
|
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(1)
|
31.2
|
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(1)
|
32.1
|
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(2)
|
32.2
|
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(2)
|
101.INS
|
|
XBRL Instance Document
(3)
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
(3)
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
(3)
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
(3)
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
(3)
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
(3)
|
(1)
|
Filed herewith.
|
(2)
|
Furnished herewith.
|
(3)
|
Submitted electronically herewith.
|
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