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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 | |
---|---|---|---|---|---|---|---|---|
20.55 | 67.49% | 51.00 | 64.83 | 36.00 | 64.83 | 206,539,039 | 00:59:59 |
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
20-2733559
|
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
|
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625 Westport Parkway
|
76051
|
||
Grapevine,
|
Texas
|
||
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol
|
|
Name of each exchange on which registered
|
Class A Common Stock
|
|
GME
|
|
NYSE
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth 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 2.
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Item 6.
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ITEM 1.
|
FINANCIAL STATEMENTS
|
|
|
August 3,
2019 |
|
August 4,
2018 |
|
February 2,
2019 |
||||||
ASSETS
|
||||||||||||
Current assets:
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
424.0
|
|
|
$
|
272.8
|
|
|
$
|
1,624.4
|
|
Receivables, net
|
|
122.4
|
|
|
121.8
|
|
|
134.2
|
|
|||
Merchandise inventories, net
|
|
948.9
|
|
|
1,130.6
|
|
|
1,250.5
|
|
|||
Prepaid expenses and other current assets
|
|
143.2
|
|
|
159.5
|
|
|
118.6
|
|
|||
Assets held for sale
|
|
29.1
|
|
|
640.1
|
|
|
—
|
|
|||
Total current assets
|
|
1,667.6
|
|
|
2,324.8
|
|
|
3,127.7
|
|
|||
Property and equipment, net
|
|
312.0
|
|
|
325.8
|
|
|
321.3
|
|
|||
Operating lease right-of-use assets
|
|
769.7
|
|
|
—
|
|
|
—
|
|
|||
Deferred income taxes
|
|
157.8
|
|
|
153.6
|
|
|
147.3
|
|
|||
Goodwill
|
|
—
|
|
|
1,337.9
|
|
|
363.9
|
|
|||
Other noncurrent assets
|
|
80.8
|
|
|
140.3
|
|
|
84.1
|
|
|||
Total assets
|
|
$
|
2,987.9
|
|
|
$
|
4,282.4
|
|
|
$
|
4,044.3
|
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||
Current liabilities:
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
$
|
368.3
|
|
|
$
|
535.8
|
|
|
$
|
1,051.9
|
|
Accrued and other current liabilities
|
|
593.7
|
|
|
714.3
|
|
|
780.0
|
|
|||
Current portion of operating lease liabilities
|
|
240.3
|
|
|
—
|
|
|
—
|
|
|||
Current portion of debt, net
|
|
—
|
|
|
—
|
|
|
349.2
|
|
|||
Liabilities held for sale
|
|
14.5
|
|
|
40.7
|
|
|
—
|
|
|||
Total current liabilities
|
|
1,216.8
|
|
|
1,290.8
|
|
|
2,181.1
|
|
|||
Deferred income taxes
|
|
0.1
|
|
|
5.0
|
|
|
0.1
|
|
|||
Long-term debt, net
|
|
419.1
|
|
|
819.2
|
|
|
471.6
|
|
|||
Operating lease liabilities
|
|
523.9
|
|
|
—
|
|
|
—
|
|
|||
Other long-term liabilities
|
|
18.3
|
|
|
63.2
|
|
|
55.3
|
|
|||
Total liabilities
|
|
2,178.2
|
|
|
2,178.2
|
|
|
2,708.1
|
|
|||
Commitments and contingencies (Note 8)
|
|
|
|
|
|
|
||||||
Stockholders’ equity:
|
|
|
|
|
|
|
||||||
Class A common stock — $.001 par value; 300 shares authorized; 90.5, 101.9 and 102.0 shares issued and outstanding
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|||
Additional paid-in capital
|
|
—
|
|
|
27.5
|
|
|
27.7
|
|
|||
Accumulated other comprehensive loss
|
|
(75.1
|
)
|
|
(40.4
|
)
|
|
(54.3
|
)
|
|||
Retained earnings
|
|
884.7
|
|
|
2,117.0
|
|
|
1,362.7
|
|
|||
Total stockholders’ equity
|
|
809.7
|
|
|
2,104.2
|
|
|
1,336.2
|
|
|||
Total liabilities and stockholders’ equity
|
|
$
|
2,987.9
|
|
|
$
|
4,282.4
|
|
|
$
|
4,044.3
|
|
|
|
13 Weeks Ended
|
|
26 Weeks Ended
|
||||||||||||
|
|
August 3,
2019 |
|
August 4,
2018 |
|
August 3,
2019 |
|
August 4,
2018 |
||||||||
Net sales
|
|
$
|
1,285.7
|
|
|
$
|
1,501.1
|
|
|
$
|
2,833.4
|
|
|
$
|
3,286.9
|
|
Cost of sales
|
|
886.6
|
|
|
1,031.1
|
|
|
1,963.1
|
|
|
2,285.8
|
|
||||
Gross profit
|
|
399.1
|
|
|
470.0
|
|
|
870.3
|
|
|
1,001.1
|
|
||||
Selling, general and administrative expenses
|
|
459.3
|
|
|
441.5
|
|
|
889.9
|
|
|
897.6
|
|
||||
Depreciation and amortization
|
|
22.6
|
|
|
27.0
|
|
|
45.7
|
|
|
55.5
|
|
||||
Goodwill impairments
|
|
363.9
|
|
|
—
|
|
|
363.9
|
|
|
—
|
|
||||
Operating (loss) earnings
|
|
(446.7
|
)
|
|
1.5
|
|
|
(429.2
|
)
|
|
48.0
|
|
||||
Interest income
|
|
(2.6
|
)
|
|
(0.5
|
)
|
|
(7.9
|
)
|
|
(1.0
|
)
|
||||
Interest expense
|
|
9.6
|
|
|
14.4
|
|
|
22.6
|
|
|
28.6
|
|
||||
(Loss) earnings from continuing operations before income taxes
|
|
(453.7
|
)
|
|
(12.4
|
)
|
|
(443.9
|
)
|
|
20.4
|
|
||||
Income tax (benefit) expense
|
|
(40.1
|
)
|
|
27.4
|
|
|
(37.8
|
)
|
|
39.8
|
|
||||
Net loss from continuing operations
|
|
(413.6
|
)
|
|
(39.8
|
)
|
|
(406.1
|
)
|
|
(19.4
|
)
|
||||
(Loss) income from discontinued operations, net of tax
|
|
(1.7
|
)
|
|
14.9
|
|
|
(2.4
|
)
|
|
22.7
|
|
||||
Net (loss) income
|
|
$
|
(415.3
|
)
|
|
$
|
(24.9
|
)
|
|
$
|
(408.5
|
)
|
|
$
|
3.3
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic (loss) earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
|
$
|
(4.14
|
)
|
|
$
|
(0.39
|
)
|
|
$
|
(4.01
|
)
|
|
$
|
(0.19
|
)
|
Discontinued operations
|
|
(0.02
|
)
|
|
0.15
|
|
|
(0.02
|
)
|
|
0.22
|
|
||||
Basic (loss) earnings per share
|
|
$
|
(4.15
|
)
|
|
$
|
(0.24
|
)
|
|
$
|
(4.04
|
)
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted (loss) earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
|
$
|
(4.14
|
)
|
|
$
|
(0.39
|
)
|
|
$
|
(4.01
|
)
|
|
$
|
(0.19
|
)
|
Discontinued operations
|
|
(0.02
|
)
|
|
0.15
|
|
|
(0.02
|
)
|
|
0.22
|
|
||||
Diluted (loss) earnings per share
|
|
$
|
(4.15
|
)
|
|
$
|
(0.24
|
)
|
|
$
|
(4.04
|
)
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
100.0
|
|
|
102.1
|
|
|
101.2
|
|
|
101.9
|
|
||||
Diluted
|
|
100.0
|
|
|
102.1
|
|
|
101.2
|
|
|
101.9
|
|
|
|
13 Weeks Ended
|
|
26 Weeks Ended
|
||||||||||||
|
|
August 3,
2019 |
|
August 4,
2018 |
|
August 3,
2019 |
|
August 4,
2018 |
||||||||
Net (loss) income
|
|
$
|
(415.3
|
)
|
|
$
|
(24.9
|
)
|
|
$
|
(408.5
|
)
|
|
$
|
3.3
|
|
Other comprehensive loss:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
|
(6.9
|
)
|
|
(17.4
|
)
|
|
(20.8
|
)
|
|
(52.6
|
)
|
||||
Total comprehensive loss
|
|
$
|
(422.2
|
)
|
|
$
|
(42.3
|
)
|
|
$
|
(429.3
|
)
|
|
$
|
(49.3
|
)
|
|
Class A
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Retained
Earnings
|
|
Total
Stockholders'
Equity
|
|||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance at February 2, 2019
|
102.0
|
|
|
$
|
0.1
|
|
|
$
|
27.7
|
|
|
$
|
(54.3
|
)
|
|
$
|
1,362.7
|
|
|
$
|
1,336.2
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.8
|
|
|
6.8
|
|
|||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
(13.9
|
)
|
|
—
|
|
|
(13.9
|
)
|
|||||
Dividends declared, $0.38 per common share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38.7
|
)
|
|
(38.7
|
)
|
|||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|||||
Settlement of stock-based awards
|
0.3
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|||||
Balance at May 4, 2019
|
102.3
|
|
|
$
|
0.1
|
|
|
$
|
29.0
|
|
|
$
|
(68.2
|
)
|
|
$
|
1,330.8
|
|
|
$
|
1,291.7
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(415.3
|
)
|
|
(415.3
|
)
|
|||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.9
|
)
|
|
—
|
|
|
(6.9
|
)
|
|||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
3.3
|
|
|
—
|
|
|
—
|
|
|
3.3
|
|
|||||
Repurchase of common shares
|
(12.0
|
)
|
|
—
|
|
|
(32.1
|
)
|
|
—
|
|
|
(30.8
|
)
|
|
(62.9
|
)
|
|||||
Settlement of stock-based awards
|
0.2
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|||||
Balance at August 3, 2019
|
90.5
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
(75.1
|
)
|
|
$
|
884.7
|
|
|
$
|
809.7
|
|
|
Class A
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Retained
Earnings
|
|
Total
Stockholders' Equity |
|||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance at February 3, 2018
|
101.3
|
|
|
$
|
0.1
|
|
|
$
|
22.1
|
|
|
$
|
12.2
|
|
|
$
|
2,180.1
|
|
|
$
|
2,214.5
|
|
Adoption of ASU 2014-09
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.5
|
|
|
11.5
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28.2
|
|
|
28.2
|
|
|||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
(35.2
|
)
|
|
—
|
|
|
(35.2
|
)
|
|||||
Dividends declared, $0.38 per common share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38.9
|
)
|
|
(38.9
|
)
|
|||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
7.6
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
|||||
Settlement of stock-based awards
|
0.6
|
|
|
—
|
|
|
(4.2
|
)
|
|
—
|
|
|
—
|
|
|
(4.2
|
)
|
|||||
Balance at May 5, 2018
|
101.9
|
|
|
$
|
0.1
|
|
|
$
|
25.5
|
|
|
$
|
(23.0
|
)
|
|
$
|
2,180.9
|
|
|
$
|
2,183.5
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24.9
|
)
|
|
(24.9
|
)
|
|||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
(17.4
|
)
|
|
—
|
|
|
(17.4
|
)
|
|||||
Dividends declared, $0.38 per common share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39.0
|
)
|
|
(39.0
|
)
|
|||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|||||
Balance at August 4, 2018
|
101.9
|
|
|
$
|
0.1
|
|
|
$
|
27.5
|
|
|
$
|
(40.4
|
)
|
|
$
|
2,117.0
|
|
|
$
|
2,104.2
|
|
|
|
26 Weeks Ended
|
||||||
|
|
August 3,
2019 |
|
August 4,
2018 |
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net (loss) income
|
|
$
|
(408.5
|
)
|
|
$
|
3.3
|
|
Adjustments to reconcile net (loss) income to net cash flows from operating activities:
|
|
|
|
|
||||
Depreciation and amortization (including amounts in cost of sales)
|
|
46.2
|
|
|
66.9
|
|
||
Provision for inventory reserves
|
|
21.5
|
|
|
25.6
|
|
||
Goodwill impairments
|
|
363.9
|
|
|
—
|
|
||
Stock-based compensation expense
|
|
5.2
|
|
|
9.6
|
|
||
Deferred income taxes
|
|
(11.8
|
)
|
|
—
|
|
||
Loss on disposal of property and equipment
|
|
0.9
|
|
|
0.9
|
|
||
Other
|
|
(8.0
|
)
|
|
(4.3
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Receivables, net
|
|
8.5
|
|
|
9.7
|
|
||
Merchandise inventories
|
|
249.0
|
|
|
77.0
|
|
||
Prepaid expenses and other current assets
|
|
(7.4
|
)
|
|
(13.3
|
)
|
||
Prepaid income taxes and income taxes payable
|
|
(76.5
|
)
|
|
(21.3
|
)
|
||
Accounts payable and accrued liabilities
|
|
(827.7
|
)
|
|
(581.7
|
)
|
||
Operating lease right-of-use assets and lease liabilities
|
|
(2.2
|
)
|
|
—
|
|
||
Changes in other long-term liabilities
|
|
0.2
|
|
|
(2.3
|
)
|
||
Net cash flows used in operating activities
|
|
(646.7
|
)
|
|
(429.9
|
)
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Purchase of property and equipment
|
|
(41.2
|
)
|
|
(40.1
|
)
|
||
Other
|
|
(1.0
|
)
|
|
2.3
|
|
||
Net cash flows used in investing activities
|
|
(42.2
|
)
|
|
(37.8
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Repayment of acquisition-related debt
|
|
—
|
|
|
(12.2
|
)
|
||
Repurchase of common shares
|
|
(62.9
|
)
|
|
—
|
|
||
Dividends paid
|
|
(40.5
|
)
|
|
(79.9
|
)
|
||
Borrowings from the revolver
|
|
—
|
|
|
154.0
|
|
||
Repayments of revolver borrowings
|
|
—
|
|
|
(154.0
|
)
|
||
Repayments of senior notes
|
|
(404.5
|
)
|
|
—
|
|
||
Settlement of stock-based awards
|
|
(0.8
|
)
|
|
(4.2
|
)
|
||
Net cash flows used in financing activities
|
|
(508.7
|
)
|
|
(96.3
|
)
|
||
Exchange rate effect on cash and cash equivalents and restricted cash
|
|
(5.1
|
)
|
|
(21.6
|
)
|
||
(Increase) decrease in cash held for sale
|
|
(0.1
|
)
|
|
3.4
|
|
||
Decrease in cash and cash equivalents and restricted cash
|
|
(1,202.8
|
)
|
|
(582.2
|
)
|
||
Cash and cash equivalents and restricted cash at beginning of period
|
|
1,640.5
|
|
|
869.1
|
|
||
Cash and cash equivalents and restricted cash at end of period
|
|
$
|
437.7
|
|
|
$
|
286.9
|
|
|
|
August 3,
2019 |
|
August 4,
2018 |
|
February 2,
2019 |
||||||
Cash and cash equivalents
|
|
$
|
424.0
|
|
|
$
|
272.8
|
|
|
$
|
1,624.4
|
|
Restricted cash (included in prepaid expenses and other current assets)
|
|
0.4
|
|
|
2.8
|
|
|
2.7
|
|
|||
Restricted cash (included in other noncurrent assets)
|
|
13.3
|
|
|
11.3
|
|
|
13.4
|
|
|||
Total cash and cash equivalents and restricted cash in the statements of cash flows
|
|
$
|
437.7
|
|
|
$
|
286.9
|
|
|
$
|
1,640.5
|
|
|
13 Weeks Ended
|
|
26 Weeks Ended
|
||||||||||||
|
August 3, 2019
|
|
August 4, 2018
|
|
August 3, 2019
|
|
August 4, 2018
|
||||||||
Net sales
|
$
|
—
|
|
|
$
|
145.6
|
|
|
$
|
—
|
|
|
$
|
293.8
|
|
Cost of sales
|
—
|
|
|
19.5
|
|
|
—
|
|
|
41.5
|
|
||||
Gross profit
|
—
|
|
|
126.1
|
|
|
—
|
|
|
252.3
|
|
||||
Selling, general and administrative expenses
|
2.2
|
|
|
100.8
|
|
|
3.0
|
|
|
210.8
|
|
||||
Depreciation and amortization
|
—
|
|
|
5.2
|
|
|
—
|
|
|
10.8
|
|
||||
(Loss) income from discontinued operations before income taxes
|
(2.2
|
)
|
|
20.1
|
|
|
(3.0
|
)
|
|
30.7
|
|
||||
Income tax (benefit) expense
|
(0.5
|
)
|
|
5.2
|
|
|
(0.6
|
)
|
|
8.0
|
|
||||
Net (loss) income from discontinued operations
|
$
|
(1.7
|
)
|
|
$
|
14.9
|
|
|
$
|
(2.4
|
)
|
|
$
|
22.7
|
|
|
|
|
||
|
|
August 4, 2018
|
||
Capital expenditures
|
|
$
|
4.1
|
|
Depreciation and amortization
|
|
10.8
|
|
|
Provision for inventory reserves
|
|
7.1
|
|
|
August 3, 2019
|
|
August 4, 2018
|
||||
|
Simply Mac
|
|
Spring Mobile
|
||||
Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
0.1
|
|
|
$
|
6.8
|
|
Receivables, net
|
1.8
|
|
|
47.9
|
|
||
Merchandise inventories, net
|
15.4
|
|
|
106.4
|
|
||
Prepaid expenses and other current assets
|
0.6
|
|
|
9.0
|
|
||
Property and equipment, net
|
0.8
|
|
|
73.6
|
|
||
Operating lease right-of-use assets
|
9.0
|
|
|
—
|
|
||
Goodwill
|
—
|
|
|
316.9
|
|
||
Other intangible assets, net
|
—
|
|
|
77.0
|
|
||
Other assets
|
1.4
|
|
|
2.5
|
|
||
Total assets held for sale
|
$
|
29.1
|
|
|
$
|
640.1
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
4.0
|
|
|
$
|
5.9
|
|
Accrued liabilities
|
1.1
|
|
|
19.7
|
|
||
Operating lease liabilities
|
9.4
|
|
|
—
|
|
||
Other liabilities
|
—
|
|
|
15.1
|
|
||
Total liabilities held for sale
|
$
|
14.5
|
|
|
$
|
40.7
|
|
|
|
13 Weeks Ended
|
|
26 Weeks Ended
|
||||||||||||
|
|
August 3, 2019
|
|
August 4, 2018
|
|
August 3, 2019
|
|
August 4, 2018
|
||||||||
New video game hardware (1)
|
|
$
|
175.6
|
|
|
$
|
298.3
|
|
|
$
|
409.1
|
|
|
$
|
657.5
|
|
New video game software
|
|
285.0
|
|
|
300.9
|
|
|
731.4
|
|
|
767.6
|
|
||||
Pre-owned and value video game products
|
|
373.1
|
|
|
452.1
|
|
|
768.4
|
|
|
947.8
|
|
||||
Video game accessories
|
|
169.6
|
|
|
187.3
|
|
|
369.8
|
|
|
386.4
|
|
||||
Digital
|
|
36.3
|
|
|
40.2
|
|
|
74.4
|
|
|
83.2
|
|
||||
Collectibles
|
|
171.8
|
|
|
141.7
|
|
|
329.1
|
|
|
284.1
|
|
||||
Other (2)
|
|
74.3
|
|
|
80.6
|
|
|
151.2
|
|
|
160.3
|
|
||||
Total
|
|
$
|
1,285.7
|
|
|
$
|
1,501.1
|
|
|
$
|
2,833.4
|
|
|
$
|
3,286.9
|
|
(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 Simply Mac branded stores. Also includes sales of PC entertainment software, interactive game figures, strategy guides, mobile and consumer electronics, and revenues from PowerUp Pro loyalty members receiving Game Informer magazine in print form.
|
|
|
Contract Liabilities
|
||
Balance at February 2, 2019
|
|
$
|
376.9
|
|
Increase to contract liabilities (1)
|
|
412.9
|
|
|
Decrease to contract liabilities (2)
|
|
(432.6
|
)
|
|
Other adjustments (3)
|
|
(2.7
|
)
|
|
Balance at August 3, 2019
|
|
$
|
354.5
|
|
(1)
|
Includes issuances of gift cards, trade-in credits and loyalty points, new reservation deposits, new subscriptions to Game Informer and extended warranties sold.
|
(2)
|
Includes redemptions of gift cards, trade-in credits, loyalty points and reservation deposits as well as revenues recognized for Game Informer and extended warranties. During the 26 weeks ended August 3, 2019, there were $39.8 million of gift cards redeemed that were outstanding as of February 2, 2019.
|
(3)
|
Primarily includes foreign currency translation adjustments.
|
|
|
August 3, 2019
|
|
August 4, 2018
|
|
February 2, 2019
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Foreign currency contracts(1)
|
|
$
|
3.2
|
|
|
$
|
4.5
|
|
|
$
|
1.0
|
|
Company-owned life insurance(2)
|
|
16.3
|
|
|
14.8
|
|
|
14.6
|
|
|||
Total assets
|
|
$
|
19.5
|
|
|
$
|
19.3
|
|
|
$
|
15.6
|
|
Liabilities
|
|
|
|
|
|
|
||||||
Foreign currency contracts(3)
|
|
$
|
1.6
|
|
|
$
|
1.3
|
|
|
$
|
1.2
|
|
Nonqualified deferred compensation(3)
|
|
1.2
|
|
|
1.2
|
|
|
1.1
|
|
|||
Total liabilities
|
|
$
|
2.8
|
|
|
$
|
2.5
|
|
|
$
|
2.3
|
|
(1)
|
Recognized in prepaid expenses and other current assets in our unaudited condensed consolidated balance sheets.
|
(2)
|
Recognized in other non-current assets in our unaudited condensed consolidated balance sheets.
|
(3)
|
Recognized in accrued liabilities in our unaudited condensed consolidated balance sheets.
|
|
|
13 Weeks Ended
|
|
26 Weeks Ended
|
||||||||||||
|
|
August 3,
2019 |
|
August 4,
2018 |
|
August 3,
2019 |
|
August 4,
2018 |
||||||||
Gains (losses) on the change in fair value of derivative instruments
|
|
$
|
0.4
|
|
|
$
|
4.7
|
|
|
$
|
2.8
|
|
|
$
|
9.4
|
|
(Losses) gains on the re-measurement of related intercompany loans and foreign currency assets and liabilities
|
|
(0.4
|
)
|
|
(4.5
|
)
|
|
(2.8
|
)
|
|
(7.5
|
)
|
||||
Net gains
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
1.9
|
|
|
|
United States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Total
|
||||||||||
Balance at February 2, 2019
|
|
$
|
363.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
363.9
|
|
Impairment charge
|
|
(363.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(363.9
|
)
|
|||||
Balance at August 3, 2019
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cumulative goodwill impairment charges
|
|
$
|
1,173.0
|
|
|
$
|
129.1
|
|
|
$
|
173.5
|
|
|
$
|
499.5
|
|
|
$
|
1,975.1
|
|
|
|
13 Weeks Ended
|
|
26 weeks ended
|
||||
|
|
August 3, 2019
|
|
August 3, 2019
|
||||
Operating lease cost
|
|
$
|
85.0
|
|
|
$
|
171.2
|
|
Variable lease cost (1)
|
|
24.8
|
|
|
49.1
|
|
||
Total rent expense
|
|
$
|
109.8
|
|
|
$
|
220.3
|
|
(1)
|
Variable lease cost includes percentage rentals and variable executory costs.
|
|
|
August 3, 2019
|
|
|
Weighted-average remaining lease term (years)
|
|
4.5
|
|
(1)
|
Weighted-average discount rate
|
|
4.5
|
%
|
|
(1)
|
The weighted-average remaining lease term is weighted based on the lease liability balance for each lease as of August 3, 2019. This weighted average calculation differs from our simple average remaining lease term due to the inclusion of reasonably certain renewal options and the effect of the lease liability value of longer term leases.
|
Period
|
|
|
Operating Leases (1)
|
||
Remainder of Fiscal Year 2019, as of August 3, 2019
|
|
$
|
150.7
|
|
|
Fiscal Year 2020
|
|
232.1
|
|
||
Fiscal Year 2021
|
|
162.0
|
|
||
Fiscal Year 2022
|
|
112.2
|
|
||
Fiscal Year 2023
|
|
77.9
|
|
||
Thereafter
|
|
124.0
|
|
||
Total remaining lease payments
|
|
858.9
|
|
||
Less: Interest
|
|
(85.3
|
)
|
||
Present value of lease liabilities (2)
|
|
$
|
773.6
|
|
(1)
|
Operating lease payments exclude legally binding lease payments for leases signed but not yet commenced.
|
(2)
|
The present value of lease liabilities consist of $240.3 million classified as current portion of operating lease liabilities, $523.9 million classified as long-term operating lease liabilities, and $9.4 million classified as held-for-sale liabilities.
|
Period
|
|
|
||
Fiscal Year 2019
|
$
|
296.2
|
|
|
Fiscal Year 2020
|
208.7
|
|
||
Fiscal Year 2021
|
149.1
|
|
||
Fiscal Year 2022
|
105.4
|
|
||
Fiscal Year 2023
|
71.4
|
|
||
Thereafter
|
116.2
|
|
||
|
|
$
|
947.0
|
|
|
August 3, 2019
|
|
August 4, 2018
|
|
February 2, 2019
|
||||||
2019 Senior Notes principal amount
|
$
|
—
|
|
|
$
|
350.0
|
|
|
$
|
350.0
|
|
2021 Senior Notes principal amount
|
421.4
|
|
|
475.0
|
|
|
475.0
|
|
|||
Less: Unamortized debt financing costs
|
(2.3
|
)
|
|
(5.8
|
)
|
|
(4.2
|
)
|
|||
|
$
|
419.1
|
|
|
$
|
819.2
|
|
|
$
|
820.8
|
|
Less: Current portion
|
—
|
|
|
—
|
|
|
(349.2
|
)
|
|||
Long-term debt, net
|
$
|
419.1
|
|
|
$
|
819.2
|
|
|
$
|
471.6
|
|
|
13 Weeks Ended
|
|
26 Weeks Ended
|
||||||||
|
August 3,
2019 |
|
August 4,
2018 |
|
August 3,
2019 |
|
August 4,
2018 |
||||
Weighted-average common shares outstanding
|
100.0
|
|
|
102.1
|
|
|
101.2
|
|
|
101.9
|
|
Dilutive effect of stock options and restricted stock awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Weighted-average diluted common shares outstanding
|
100.0
|
|
|
102.1
|
|
|
101.2
|
|
|
101.9
|
|
|
|
|
|
|
|
|
|
||||
Anti-dilutive stock options and restricted stock awards
|
2.5
|
|
|
2.0
|
|
|
2.5
|
|
|
2.0
|
|
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Consolidated
|
||||||||||
13 weeks ended August 3, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
880.0
|
|
|
$
|
63.0
|
|
|
$
|
121.2
|
|
|
$
|
221.5
|
|
|
$
|
1,285.7
|
|
Operating loss
|
|
(414.1
|
)
|
|
(7.1
|
)
|
|
(2.2
|
)
|
|
(23.3
|
)
|
|
(446.7
|
)
|
|||||
13 weeks ended August 4, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
1,041.5
|
|
|
$
|
74.5
|
|
|
$
|
136.4
|
|
|
$
|
248.7
|
|
|
$
|
1,501.1
|
|
Operating earnings (loss)
|
|
23.5
|
|
|
(3.3
|
)
|
|
0.5
|
|
|
(19.2
|
)
|
|
1.5
|
|
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Consolidated
|
||||||||||
26 weeks ended August 3, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
2,023.2
|
|
|
$
|
135.6
|
|
|
$
|
222.8
|
|
|
$
|
451.8
|
|
|
$
|
2,833.4
|
|
Operating loss
|
|
(361.9
|
)
|
|
(12.4
|
)
|
|
(10.4
|
)
|
|
(44.5
|
)
|
|
(429.2
|
)
|
|||||
26 weeks ended August 4, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
2,334.7
|
|
|
$
|
156.4
|
|
|
$
|
258.5
|
|
|
$
|
537.3
|
|
|
$
|
3,286.9
|
|
Operating earnings (loss)
|
|
90.8
|
|
|
(3.6
|
)
|
|
(7.1
|
)
|
|
(32.1
|
)
|
|
48.0
|
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
13 Weeks Ended
|
|
26 Weeks Ended
|
||||||||||||||||||||||||
|
August 3, 2019
|
|
August 4, 2018
|
|
August 3, 2019
|
|
August 4, 2018
|
||||||||||||||||||||
|
Amount
|
|
Percent of
Net Sales
|
|
Amount
|
|
Percent of
Net Sales
|
|
Amount
|
|
Percent of
Net Sales |
|
Amount
|
|
Percent of
Net Sales |
||||||||||||
Net sales
|
$
|
1,285.7
|
|
|
100.0
|
%
|
|
$
|
1,501.1
|
|
|
100.0
|
%
|
|
$
|
2,833.4
|
|
|
100.0
|
%
|
|
$
|
3,286.9
|
|
|
100.0
|
%
|
Cost of sales
|
886.6
|
|
|
69.0
|
|
|
1,031.1
|
|
|
68.7
|
|
|
1,963.1
|
|
|
69.3
|
|
|
2,285.8
|
|
|
69.5
|
|
||||
Gross profit
|
399.1
|
|
|
31.0
|
|
|
470.0
|
|
|
31.3
|
|
|
870.3
|
|
|
30.7
|
|
|
1,001.1
|
|
|
30.5
|
|
||||
Selling, general and administrative expenses
|
459.3
|
|
|
35.6
|
|
|
441.5
|
|
|
29.4
|
|
|
889.9
|
|
|
31.4
|
|
|
897.6
|
|
|
27.3
|
|
||||
Depreciation and amortization
|
22.6
|
|
|
1.8
|
|
|
27.0
|
|
|
1.8
|
|
|
45.7
|
|
|
1.6
|
|
|
55.5
|
|
|
1.7
|
|
||||
Goodwill impairments
|
363.9
|
|
|
28.3
|
|
|
—
|
|
|
—
|
|
|
363.9
|
|
|
12.8
|
|
|
—
|
|
|
—
|
|
||||
Operating (loss) earnings
|
(446.7
|
)
|
|
(34.7
|
)
|
|
1.5
|
|
|
0.1
|
|
|
(429.2
|
)
|
|
(15.1
|
)
|
|
48.0
|
|
|
1.5
|
|
||||
Interest expense, net
|
7.0
|
|
|
0.6
|
|
|
13.9
|
|
|
1.0
|
|
|
14.7
|
|
|
0.6
|
|
|
27.6
|
|
|
0.9
|
|
||||
(Loss) earnings from continuing operations before income taxes
|
(453.7
|
)
|
|
(35.3
|
)
|
|
(12.4
|
)
|
|
(0.9
|
)
|
|
(443.9
|
)
|
|
(15.7
|
)
|
|
20.4
|
|
|
0.6
|
|
||||
Income tax (benefit) expense
|
(40.1
|
)
|
|
(3.1
|
)
|
|
27.4
|
|
|
1.8
|
|
|
(37.8
|
)
|
|
(1.4
|
)
|
|
39.8
|
|
|
1.2
|
|
||||
Net loss from continuing operations
|
(413.6
|
)
|
|
(32.2
|
)
|
|
(39.8
|
)
|
|
(2.7
|
)
|
|
(406.1
|
)
|
|
(14.3
|
)
|
|
(19.4
|
)
|
|
(0.6
|
)
|
||||
(Loss) income from discontinued operations, net of tax
|
(1.7
|
)
|
|
(0.1
|
)
|
|
14.9
|
|
|
1.0
|
|
|
(2.4
|
)
|
|
(0.1
|
)
|
|
22.7
|
|
|
0.7
|
|
||||
Net (loss) income
|
$
|
(415.3
|
)
|
|
(32.3
|
)%
|
|
$
|
(24.9
|
)
|
|
(1.7
|
)%
|
|
$
|
(408.5
|
)
|
|
(14.4
|
)%
|
|
$
|
3.3
|
|
|
0.1
|
%
|
|
|
13 Weeks Ended
|
|
26 Weeks Ended
|
||||||||||||||||||||||||
|
|
August 3, 2019
|
|
August 4, 2018
|
|
August 3, 2019
|
|
August 4, 2018
|
||||||||||||||||||||
|
|
Net
Sales
|
|
Percent
of Total
|
|
Net
Sales
|
|
Percent
of Total
|
|
Net
Sales
|
|
Percent
of Total
|
|
Net
Sales
|
|
Percent
of Total
|
||||||||||||
New video game hardware(1)
|
|
$
|
175.6
|
|
|
13.7
|
%
|
|
$
|
298.3
|
|
|
19.9
|
%
|
|
$
|
409.1
|
|
|
14.4
|
%
|
|
$
|
657.5
|
|
|
20.0
|
%
|
New video game software
|
|
285.0
|
|
|
22.2
|
|
|
300.9
|
|
|
20.0
|
|
|
731.4
|
|
|
25.8
|
|
|
767.6
|
|
|
23.4
|
|
||||
Pre-owned and value video game products
|
|
373.1
|
|
|
29.0
|
|
|
452.1
|
|
|
30.1
|
|
|
768.4
|
|
|
27.1
|
|
|
947.8
|
|
|
28.8
|
|
||||
Video game accessories
|
|
169.6
|
|
|
13.2
|
|
|
187.3
|
|
|
12.5
|
|
|
369.8
|
|
|
13.1
|
|
|
386.4
|
|
|
11.8
|
|
||||
Digital
|
|
36.3
|
|
|
2.8
|
|
|
40.2
|
|
|
2.7
|
|
|
74.4
|
|
|
2.6
|
|
|
83.2
|
|
|
2.5
|
|
||||
Collectibles
|
|
171.8
|
|
|
13.4
|
|
|
141.7
|
|
|
9.4
|
|
|
329.1
|
|
|
11.6
|
|
|
284.1
|
|
|
8.6
|
|
||||
Other(2)
|
|
74.3
|
|
|
5.7
|
|
|
80.6
|
|
|
5.4
|
|
|
151.2
|
|
|
5.4
|
|
|
160.3
|
|
|
4.9
|
|
||||
Total
|
|
$
|
1,285.7
|
|
|
100.0
|
%
|
|
$
|
1,501.1
|
|
|
100.0
|
%
|
|
$
|
2,833.4
|
|
|
100.0
|
%
|
|
$
|
3,286.9
|
|
|
100.0
|
%
|
|
|
13 Weeks Ended
|
|
26 Weeks Ended
|
||||||||||||||||||||||||
|
|
August 3, 2019
|
|
August 4, 2018
|
|
August 3, 2019
|
|
August 4, 2018
|
||||||||||||||||||||
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
|
Gross
Profit
|
|
Gross
Profit
Percent
|
||||||||||||
New video game hardware(1)
|
|
$
|
17.0
|
|
|
9.7
|
%
|
|
$
|
34.6
|
|
|
11.6
|
%
|
|
$
|
39.5
|
|
|
9.7
|
%
|
|
$
|
69.8
|
|
|
10.6
|
%
|
New video game software
|
|
59.8
|
|
|
21.0
|
|
|
67.9
|
|
|
22.6
|
|
|
154.2
|
|
|
21.1
|
|
|
166.7
|
|
|
21.7
|
|
||||
Pre-owned and value video game products
|
|
159.6
|
|
|
42.8
|
|
|
197.5
|
|
|
43.7
|
|
|
333.5
|
|
|
43.4
|
|
|
418.1
|
|
|
44.1
|
|
||||
Video game accessories
|
|
61.0
|
|
|
36.0
|
|
|
62.7
|
|
|
33.5
|
|
|
133.5
|
|
|
36.1
|
|
|
130.2
|
|
|
33.7
|
|
||||
Digital
|
|
32.7
|
|
|
90.1
|
|
|
36.3
|
|
|
90.3
|
|
|
67.5
|
|
|
90.7
|
|
|
74.5
|
|
|
89.5
|
|
||||
Collectibles
|
|
48.0
|
|
|
27.9
|
|
|
45.1
|
|
|
31.8
|
|
|
99.4
|
|
|
30.2
|
|
|
90.9
|
|
|
32.0
|
|
||||
Other(2)
|
|
21.0
|
|
|
28.3
|
|
|
25.9
|
|
|
32.1
|
|
|
42.7
|
|
|
28.2
|
|
|
50.9
|
|
|
31.8
|
|
||||
Total
|
|
$
|
399.1
|
|
|
31.0
|
%
|
|
$
|
470.0
|
|
|
31.3
|
%
|
|
$
|
870.3
|
|
|
30.7
|
%
|
|
$
|
1,001.1
|
|
|
30.5
|
%
|
(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 Simply Mac branded stores. Also includes sales of PC entertainment software, interactive game figures, strategy guides, mobile and consumer electronics sold through our video game brands, and revenues from PowerUp Pro loyalty members receiving Game Informer magazine in print form.
|
|
|
13 Weeks Ended
|
|
Change
|
|||||||||||
|
|
August 3, 2019
|
|
August 4, 2018
|
|
$
|
|
%
|
|||||||
|
|
($ in millions)
|
|
|
|
|
|||||||||
Net sales
|
|
$
|
1,285.7
|
|
|
$
|
1,501.1
|
|
|
$
|
(215.4
|
)
|
|
(14.3
|
)%
|
Cost of sales
|
|
886.6
|
|
|
1,031.1
|
|
|
(144.5
|
)
|
|
(14.0
|
)
|
|||
Gross profit
|
|
399.1
|
|
|
470.0
|
|
|
(70.9
|
)
|
|
(15.1
|
)
|
|||
Selling, general and administrative expenses
|
|
459.3
|
|
|
441.5
|
|
|
17.8
|
|
|
4.0
|
|
|||
Depreciation and amortization
|
|
22.6
|
|
|
27.0
|
|
|
(4.4
|
)
|
|
(16.3
|
)
|
|||
Goodwill impairments
|
|
363.9
|
|
|
—
|
|
|
363.9
|
|
|
NM
|
|
|||
Operating (loss) earnings
|
|
(446.7
|
)
|
|
1.5
|
|
|
(448.2
|
)
|
|
NM
|
|
|||
Interest expense, net
|
|
7.0
|
|
|
13.9
|
|
|
(6.9
|
)
|
|
(49.6
|
)
|
|||
(Loss) earnings from continuing operations before income taxes
|
|
(453.7
|
)
|
|
(12.4
|
)
|
|
(441.3
|
)
|
|
NM
|
|
|||
Income tax (benefit) expense
|
|
(40.1
|
)
|
|
27.4
|
|
|
(67.5
|
)
|
|
NM
|
|
|||
Net loss from continuing operations
|
|
(413.6
|
)
|
|
(39.8
|
)
|
|
(373.8
|
)
|
|
NM
|
|
|||
(Loss) income from discontinued operations, net of tax
|
|
(1.7
|
)
|
|
14.9
|
|
|
(16.6
|
)
|
|
NM
|
|
|||
Net (loss) income
|
|
$
|
(415.3
|
)
|
|
$
|
(24.9
|
)
|
|
$
|
(390.4
|
)
|
|
NM
|
|
|
|
13 Weeks Ended
|
|
Change
|
|||||||||||
|
|
August 3, 2019
|
|
August 4, 2018
|
|
$
|
|
%
|
|||||||
Net Sales:
|
|
($ in millions)
|
|
|
|
|
|||||||||
New video game hardware(1)
|
|
$
|
175.6
|
|
|
$
|
298.3
|
|
|
$
|
(122.7
|
)
|
|
(41.1
|
)%
|
New video game software
|
|
285.0
|
|
|
300.9
|
|
|
(15.9
|
)
|
|
(5.3
|
)
|
|||
Pre-owned and value video game products
|
|
373.1
|
|
|
452.1
|
|
|
(79.0
|
)
|
|
(17.5
|
)
|
|||
Video game accessories
|
|
169.6
|
|
|
187.3
|
|
|
(17.7
|
)
|
|
(9.5
|
)
|
|||
Digital
|
|
36.3
|
|
|
40.2
|
|
|
(3.9
|
)
|
|
(9.7
|
)
|
|||
Collectibles
|
|
171.8
|
|
|
141.7
|
|
|
30.1
|
|
|
21.2
|
|
|||
Other(2)
|
|
74.3
|
|
|
80.6
|
|
|
(6.3
|
)
|
|
(7.8
|
)
|
|||
Total
|
|
$
|
1,285.7
|
|
|
$
|
1,501.1
|
|
|
$
|
(215.4
|
)
|
|
(14.3
|
)%
|
|
|
13 Weeks Ended
|
|
Change
|
|||||||||||
|
|
August 3, 2019
|
|
August 4, 2018
|
|
$
|
|
%
|
|||||||
Gross Profit:
|
|
($ in millions)
|
|
|
|
|
|||||||||
New video game hardware(1)
|
|
$
|
17.0
|
|
|
$
|
34.6
|
|
|
$
|
(17.6
|
)
|
|
(50.9
|
)%
|
New video game software
|
|
59.8
|
|
|
67.9
|
|
|
(8.1
|
)
|
|
(11.9
|
)
|
|||
Pre-owned and value video game products
|
|
159.6
|
|
|
197.5
|
|
|
(37.9
|
)
|
|
(19.2
|
)
|
|||
Video game accessories
|
|
61.0
|
|
|
62.7
|
|
|
(1.7
|
)
|
|
(2.7
|
)
|
|||
Digital
|
|
32.7
|
|
|
36.3
|
|
|
(3.6
|
)
|
|
(9.9
|
)
|
|||
Collectibles
|
|
48.0
|
|
|
45.1
|
|
|
2.9
|
|
|
6.4
|
|
|||
Other(2)
|
|
21.0
|
|
|
25.9
|
|
|
(4.9
|
)
|
|
(18.9
|
)
|
|||
Total
|
|
$
|
399.1
|
|
|
$
|
470.0
|
|
|
$
|
(70.9
|
)
|
|
(15.1
|
)%
|
(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 Simply Mac branded stores. Also includes sales of PC entertainment software, interactive game figures, strategy guides, mobile and consumer electronics sold through our video game brands, and revenues from PowerUp Pro loyalty members receiving Game Informer magazine in print form.
|
•
|
New video game hardware sales decreased $122.7 million, or 41.1%, for the 13 weeks ended August 3, 2019 compared to the 13 weeks ended August 4, 2018, primarily driven by lower demand for the current generation consoles from Sony and Microsoft as they near the end of their console cycle.
|
•
|
Pre-owned and value video game product sales decreased $79.0 million, or 17.5%, for the 13 weeks ended August 3, 2019 compared to the 13 weeks ended August 4, 2018. The decrease was primarily driven by a decline in sales of pre-owned software due to weakening demand as a result of increasing digital adoption, including digital access to older titles.
|
•
|
Video game accessories decreased $17.7 million, or 9.5%, for the 13 weeks ended August 3, 2019 compared to the 13 weeks ended August 4, 2018, primarily due to the strength in sales in the prior year period of audio-related and other accessories associated with growth in the battle royale gaming genre.
|
•
|
New video game software sales decreased $15.9 million, or 5.3%, for the 13 weeks ended August 3, 2019 compared to the 13 weeks ended August 4, 2018, primarily due to a stronger lineup of new title releases in the prior year quarter.
|
|
|
26 Weeks Ended
|
|
Change
|
|||||||||||
|
|
August 3, 2019
|
|
August 4, 2018
|
|
$
|
|
%
|
|||||||
|
|
($ in millions)
|
|
|
|
|
|||||||||
Net sales
|
|
$
|
2,833.4
|
|
|
$
|
3,286.9
|
|
|
$
|
(453.5
|
)
|
|
(13.8
|
)%
|
Cost of sales
|
|
1,963.1
|
|
|
2,285.8
|
|
|
(322.7
|
)
|
|
(14.1
|
)
|
|||
Gross profit
|
|
870.3
|
|
|
1,001.1
|
|
|
(130.8
|
)
|
|
(13.1
|
)
|
|||
Selling, general and administrative expenses
|
|
889.9
|
|
|
897.6
|
|
|
(7.7
|
)
|
|
(0.9
|
)
|
|||
Depreciation and amortization
|
|
45.7
|
|
|
55.5
|
|
|
(9.8
|
)
|
|
(17.7
|
)
|
|||
Goodwill impairments
|
|
363.9
|
|
|
—
|
|
|
363.9
|
|
|
NM
|
|
|||
Operating (loss) earnings
|
|
(429.2
|
)
|
|
48.0
|
|
|
(477.2
|
)
|
|
NM
|
|
|||
Interest expense, net
|
|
14.7
|
|
|
27.6
|
|
|
(12.9
|
)
|
|
(46.7
|
)
|
|||
(Loss) earnings from continuing operations before income taxes
|
|
(443.9
|
)
|
|
20.4
|
|
|
(464.3
|
)
|
|
NM
|
|
|||
Income tax (benefit) expense
|
|
(37.8
|
)
|
|
39.8
|
|
|
(77.6
|
)
|
|
NM
|
|
|||
Net loss from continuing operations
|
|
(406.1
|
)
|
|
(19.4
|
)
|
|
(386.7
|
)
|
|
NM
|
|
|||
(Loss) income from discontinued operations, net of tax
|
|
(2.4
|
)
|
|
22.7
|
|
|
(25.1
|
)
|
|
NM
|
|
|||
Net (loss) income
|
|
$
|
(408.5
|
)
|
|
$
|
3.3
|
|
|
$
|
(411.8
|
)
|
|
NM
|
|
|
|
26 Weeks Ended
|
|
Change
|
|||||||||||
|
|
August 3, 2019
|
|
August 4, 2018
|
|
$
|
|
%
|
|||||||
Net Sales:
|
|
($ in millions)
|
|
|
|
|
|||||||||
New video game hardware(1)
|
|
$
|
409.1
|
|
|
$
|
657.5
|
|
|
$
|
(248.4
|
)
|
|
(37.8
|
)%
|
New video game software
|
|
731.4
|
|
|
767.6
|
|
|
(36.2
|
)
|
|
(4.7
|
)
|
|||
Pre-owned and value video game products
|
|
768.4
|
|
|
947.8
|
|
|
(179.4
|
)
|
|
(18.9
|
)
|
|||
Video game accessories
|
|
369.8
|
|
|
386.4
|
|
|
(16.6
|
)
|
|
(4.3
|
)
|
|||
Digital
|
|
74.4
|
|
|
83.2
|
|
|
(8.8
|
)
|
|
(10.6
|
)
|
|||
Collectibles
|
|
329.1
|
|
|
284.1
|
|
|
45.0
|
|
|
15.8
|
|
|||
Other(2)
|
|
151.2
|
|
|
160.3
|
|
|
(9.1
|
)
|
|
(5.7
|
)
|
|||
Total
|
|
$
|
2,833.4
|
|
|
$
|
3,286.9
|
|
|
$
|
(453.5
|
)
|
|
(13.8
|
)%
|
|
|
26 Weeks Ended
|
|
Change
|
|||||||||||
|
|
August 3, 2019
|
|
August 4, 2018
|
|
$
|
|
%
|
|||||||
Gross Profit:
|
|
($ in millions)
|
|
|
|
|
|||||||||
New video game hardware(1)
|
|
$
|
39.5
|
|
|
$
|
69.8
|
|
|
$
|
(30.3
|
)
|
|
(43.4
|
)%
|
New video game software
|
|
154.2
|
|
|
166.7
|
|
|
(12.5
|
)
|
|
(7.5
|
)
|
|||
Pre-owned and value video game products
|
|
333.5
|
|
|
418.1
|
|
|
(84.6
|
)
|
|
(20.2
|
)
|
|||
Video game accessories
|
|
133.5
|
|
|
130.2
|
|
|
3.3
|
|
|
2.5
|
|
|||
Digital
|
|
67.5
|
|
|
74.5
|
|
|
(7.0
|
)
|
|
(9.4
|
)
|
|||
Collectibles
|
|
99.4
|
|
|
90.9
|
|
|
8.5
|
|
|
9.4
|
|
|||
Other(2)
|
|
42.7
|
|
|
50.9
|
|
|
(8.2
|
)
|
|
(16.1
|
)
|
|||
Total
|
|
$
|
870.3
|
|
|
$
|
1,001.1
|
|
|
$
|
(130.8
|
)
|
|
(13.1
|
)%
|
(1)
|
Includes sales of hardware bundles, in which physical hardware and digital or physical software are sold together as a single SKU.
|
(2)
|
Includes the operations of our Simply Mac stores and Cricket Wireless branded stores. We sold our Cricket Wireless branded stores in January 2018. Also includes sales of PC entertainment software, interactive game figures, strategy guides, mobile and consumer electronics sold through our video game brands, and revenues from PowerUp Pro loyalty members receiving Game Informer magazine in print form.
|
•
|
New video game hardware sales decreased $248.4 million, or 37.8%, for the 26 weeks ended August 3, 2019 compared to the 26 weeks ended August 4, 2018, primarily driven by lower demand for the current generation consoles from Sony and Microsoft as they near the end of their console cycle.
|
•
|
Pre-owned and value video game product sales decreased $179.4 million or 18.9% for the 26 weeks ended August 3, 2019 compared to the 26 weeks ended August 4, 2018. The decrease was primarily driven by a decline in sales of pre-owned software due to weakening demand as a result of increasing digital adoption, including digital access to older titles.
|
•
|
New video game software sales decreased $36.2 million or 4.7%, for the 26 weeks ended August 3, 2019 compared to the 26 weeks ended August 4, 2018, primarily due to a stronger lineup of new title releases in the prior year period.
|
•
|
Video game accessories sales decreased $16.6 million, or 4.3%, for the 26 weeks ended August 3, 2019 compared to the 26 weeks ended August 4, 2018, primarily due to the strength in sales in the prior year period of audio-related and other accessories associated with growth in the battle royale gaming genre.
|
As of and for the 13 Weeks Ended August 3, 2019
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Consolidated
|
||||||||||
Net sales
|
|
$
|
880.0
|
|
|
$
|
63.0
|
|
|
$
|
121.2
|
|
|
$
|
221.5
|
|
|
$
|
1,285.7
|
|
Operating loss
|
|
$
|
(414.1
|
)
|
|
$
|
(7.1
|
)
|
|
$
|
(2.2
|
)
|
|
$
|
(23.3
|
)
|
|
$
|
(446.7
|
)
|
Segment operating data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Store count
|
|
3,780
|
|
|
307
|
|
|
448
|
|
|
1,189
|
|
|
5,724
|
|
|||||
Comparable store sales
|
|
(14.0
|
)%
|
|
(13.4
|
)%
|
|
(4.0
|
)%
|
|
(5.4
|
)%
|
|
(11.6
|
)%
|
As of and for the 13 Weeks Ended August 4, 2018
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Consolidated
|
||||||||||
Net sales
|
|
$
|
1,041.5
|
|
|
$
|
74.5
|
|
|
$
|
136.4
|
|
|
$
|
248.7
|
|
|
$
|
1,501.1
|
|
Operating earnings (loss)
|
|
$
|
23.5
|
|
|
$
|
(3.3
|
)
|
|
$
|
0.5
|
|
|
$
|
(19.2
|
)
|
|
$
|
1.5
|
|
Segment operating data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Store count
|
|
3,887
|
|
|
317
|
|
|
467
|
|
|
1,232
|
|
|
5,903
|
|
|||||
Comparable store sales
|
|
2.4
|
%
|
|
6.2
|
%
|
|
(5.6
|
)%
|
|
(10.1
|
)%
|
|
(0.5
|
)%
|
As of and for the 26 Weeks Ended August 3, 2019
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Consolidated
|
||||||||||
Net sales
|
|
$
|
2,023.2
|
|
|
$
|
135.6
|
|
|
$
|
222.8
|
|
|
$
|
451.8
|
|
|
$
|
2,833.4
|
|
Operating loss
|
|
$
|
(361.9
|
)
|
|
$
|
(12.4
|
)
|
|
$
|
(10.4
|
)
|
|
$
|
(44.5
|
)
|
|
$
|
(429.2
|
)
|
Segment operating data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Store count
|
|
3,780
|
|
|
307
|
|
|
448
|
|
|
1,189
|
|
|
5,724
|
|
|||||
Comparable store sales
|
|
(11.9
|
)%
|
|
(9.8
|
)%
|
|
(5.9
|
)%
|
|
(9.2
|
)%
|
|
(10.9
|
)%
|
As of and for the 26 Weeks Ended August 4, 2018
|
|
United
States
|
|
Canada
|
|
Australia
|
|
Europe
|
|
Consolidated
|
||||||||||
Net sales
|
|
$
|
2,334.7
|
|
|
$
|
156.4
|
|
|
$
|
258.5
|
|
|
$
|
537.3
|
|
|
$
|
3,286.9
|
|
Operating earnings (loss)
|
|
$
|
90.8
|
|
|
$
|
(3.6
|
)
|
|
$
|
(7.1
|
)
|
|
$
|
(32.1
|
)
|
|
$
|
48.0
|
|
Segment operating data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Store count
|
|
3,887
|
|
|
317
|
|
|
467
|
|
|
1,232
|
|
|
5,903
|
|
|||||
Comparable store sales
|
|
(0.5
|
)%
|
|
(5.3
|
)%
|
|
(10.2
|
)%
|
|
(9.8
|
)%
|
|
(3.2
|
)%
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
|
Total
Number of
Shares
Purchased
|
|
Weighted-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)
|
||||||
May 5 through June 1, 2019(2)
|
|
25,650
|
|
|
$
|
7.58
|
|
|
—
|
|
|
$
|
300.0
|
|
June 2 through July 6, 2019(2)
|
|
4,990
|
|
|
$
|
5.31
|
|
|
—
|
|
|
$
|
300.0
|
|
July 7 through August 3, 2019(3)
|
|
12,000,000
|
|
|
$
|
5.20
|
|
|
12,000,000
|
|
|
$
|
237.1
|
|
Total
|
|
12,030,640
|
|
|
$
|
5.21
|
|
|
12,000,000
|
|
|
$
|
237.1
|
|
(1)
|
In March 2019, we publicly announced that our Board of Directors authorized a share repurchase program allowing our management to repurchase up to $300 million of our Class A Common Stock. As of August 3, 2019, we had $237.1 million remaining to repurchase shares under the authorized repurchase program which has no expiration date.
|
(2)
|
Under our 2011 and 2019 Incentive plans, approved by our Board of Directors and our stockholders, the Company may withhold ordinary shares from certain employees to satisfy minimum tax withholding obligations relating to the vesting of their restricted stock awards. Our 2011 Incentive plan was effective through June 25, 2019, when our 2019 Incentive plan was approved.
|
(3)
|
On June 11, 2019, we commenced a modified Dutch auction tender offer for up to 12.0 million shares of our Class A common stock with a price range between $5.20 and $6.00 per share. The tender offer expired on July 10, 2019. Through the tender offer, we accepted for payment 12.0 million shares at a purchase price of $5.20 per share for a total of $62.9 million, including fees and commissions. The shares purchased through the tender offer were immediately retired.
|
ITEM 6.
|
EXHIBITS
|
Exhibit
Number
|
|
Description
|
|
Previously Filed as an Exhibit to and Incorporated by Reference From
|
|
Date Filed
|
31.1
|
|
|
Filed herewith.
|
|
|
|
31.2
|
|
|
Filed herewith.
|
|
|
|
32.1
|
|
|
Furnished herewith.
|
|
|
|
32.2
|
|
|
Furnished herewith.
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are imbedded within the inline XBRL document.
|
|
Submitted electronically herewith.
|
|
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema
|
|
Submitted electronically herewith.
|
|
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase
|
|
Submitted electronically herewith.
|
|
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase
|
|
Submitted electronically herewith.
|
|
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase
|
|
Submitted electronically herewith.
|
|
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase
|
|
Submitted electronically herewith.
|
|
|
104
|
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
|
|
Submitted electronically herewith.
|
|
|
|
GAMESTOP CORP.
|
||
|
|
|
|
|
By:
|
|
/s/ JAMES A. BELL
|
|
|
|
James A. Bell
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
Date: September 11, 2019
|
|
|
|
|
|
||
|
GAMESTOP CORP.
|
||
|
|
|
|
|
By:
|
|
/s/ TROY W. CRAWFORD
|
|
|
|
Troy W. Crawford
|
|
|
|
Senior Vice President and Chief Accounting Officer
|
|
|
|
(Principal Accounting Officer)
|
|
|
|
|
Date: September 11, 2019
|
|
|
|
1 Year GameStop Chart |
1 Month GameStop Chart |
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