GameStop Form 10-K: Fiscal Year 2017

Key insights

6 takeaways

01
GameStop reported net sales of $9,224.6 million for fiscal 2017, representing a 7.2% increase over the $8,607.9 million reported in fiscal 2016.See it on page 1
02
Net income was $34.7 million in fiscal 2017, a 90.2% decrease from net income of $353.2 million in fiscal 2016.See it on page 1
03
The company recorded $358.0 million in asset impairment charges in fiscal 2017, primarily linked to intangible assets within the Technology Brands segment.See it on page 1
04
The company's retail footprint consisted of 7,276 stores globally as of February 3, 2018, with 5,899 stores in Video Game Brands segments and 1,377 in Technology Brands.See it on page 1
05
During fiscal 2017, the company generated approximately 38% of its sales during the fourth quarter.See it on page 1
06
As of February 3, 2018, the company held $1.8 billion in goodwill and intangible assets, net.See it on page 1

Summary

GameStop Corp. is a global family of specialty retail brands that makes the most popular technologies affordable and simple. As of February 3, 2018, the company operated 7,276 company-operated stores across the United States, Canada, Australia, and Europe. The company reports its financial results through four geographic Video Game Brands segments and a Technology Brands segment, which includes Spring Mobile and Simply Mac businesses. The fiscal year 2017 consisted of 53 weeks, compared to 52 weeks in fiscal 2016 and 2015.

For fiscal 2017, the company reported net sales of $9,224.6 million, an increase from $8,607.9 million in fiscal 2016. Net income for fiscal 2017 was $34.7 million, a decrease from $353.2 million in fiscal 2016. Operating earnings for fiscal 2017 were $135.6 million, down from $557.7 million in the prior year. The company recorded goodwill impairment charges of $32.8 million and asset impairment charges of $358.0 million during fiscal 2017, primarily associated with intangible assets in the Technology Brands segment.

GameStop’s business is seasonal, with approximately 38% of sales generated during the fourth fiscal quarter in 2017. The company’s retail network includes 5,899 stores in its Video Game Brands segments and 1,377 stores in its Technology Brands segment as of February 3, 2018. The company’s PowerUp Rewards loyalty program had over 37 million members in the United States as of the end of fiscal 2017.