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GameStop Financials

GameStop Reports 2009 Holiday Sales Results in an unusual bit of financial reporting for a nine-week period. They say: "Total sales for the period were $2.86 billion, flat from prior year sales. New stores continue to perform very well while comparable store sales for the period decreased 8.6%." As a result they have lowered their fourth quarter 2009 guidance. Here's what seems to be the oddest quote in the announcement, as we can't figure out how price cuts cause sales declines: "Hardware sales declined 8% due to recent console price cuts and a decline in unit sales on a year-over-year basis."

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16. Re: GameStop Financials Jan 8, 2010, 05:08 Kxmode
 
$2 + $2 = $22. Nothing else to see here. Move along. Move along.  
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15. Re: GameStop Financials Jan 7, 2010, 19:45 Ruffiana
 
What around here isn't obnoxious and pointless?  
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14. Re: GameStop Financials Jan 7, 2010, 13:40 Verno
 
The whole "my witty one line wikipedia reply" should be bannable around here, it's obnoxious and pointless.  
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Playing: South Park, Dark Souls 2
Watching: Enemy, Network, Wer
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13. Re: GameStop Financials Jan 7, 2010, 13:32 Ruffiana
 
I dont understand the obsession with "growth". Why does every company want to "grow" or even need to grow every single year.

Whats even worse is the terror that less growth inspires in company executives.

"OH MY GOD, we saw an increase in sales of 5% this year compared to a 10% that we head last year! OH NO THE WORLD IS GOING TO END"

Jesus Christ, its not like you are making LESS money this year than last, its just that your profits were less than you expected.

Its a greedy and fucked up world we live in...

http://en.wikipedia.org/wiki/Recession
 
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12. Re: GameStop Financials Jan 7, 2010, 13:19 Surf
 
1st brick and mortar to be gone by 2012 - Blockbuster Video.
2nd Gamestop
 
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11. Re: GameStop Financials Jan 7, 2010, 12:56 Ray Marden
 
Welcome to capitalism?

It isn't enough to break even, it isn't enough to do well, and it certainly ins't enough to do as good as last year (especially in a worldwide recession.)

Which is really stupid, but it is not like I can change things. Although the government may not make it seem like this and even accounting for population increases, money does not just magically appear out of thin air.

If one person is taking in more money, other people are losing more of it. Well, that or just inflate everything across the board so then we can all say we took in more...
I know, I know - crazy talk.
Wishing somebody would do something about this forum code...,
Ray
 
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Everything is awesome!!!
http://shoutengine.com/GarnettonGames/
I love you, mom.
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10. Re: GameStop Financials Jan 7, 2010, 12:34 Prez
 
Even with 10 trillion in MW2 sales, sales were flat? I'd like to see what they would have been without MW2.

This comment was edited on Jan 7, 2010, 12:34.
 
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“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
- Mahatma Gandhi
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9. Re: GameStop Financials Jan 7, 2010, 12:24 kimbambaman
 
Perhaps they meant that hardware revenues declined 8%?  
"Everybody out of the universe!" - Nibbler, Futurama
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8. Re: GameStop Financials Jan 7, 2010, 11:09 Verno
 
Myself, I'd really rather find a company that had a steady and -sustainable- profit to invest in, rather than looking at the illusionary value of the stock market. But I'll admit that this is a philosophical stance, and probably not the one most likely to maximize my profit.

I'm much the same but a lot of what drives the market is potential growth because let's face it, the majority of investors are looking to maximize the return on their investment. Hopefully going forward people will start to return to the safer investment line of thinking but that's not what drives America unfortunately.

Besides that, a perfectly good company share price might drop significantly if people start to sell out just based on lower growth. I mean as long as its still growing why panic?

Usually the panic is a result of something though is the point.

It all might make sense commercially but I still dislike it. Its not like any company can grow infinitely right? Thinking of value as a direct correlation of growth is borderline insane if you ask me, we live on a planet with limited resources after all...

No one said you had to like it, you asked and I was explaining my reasoning on why it is the way it is By the way, most world economies are basically structured around the idea of infinite growth. It's part of the reason we don't hand the grocer some sort of ore as currency anymore, we use money which is literally paper(or printed coin) with a perceived value. Money used to be valuable because it was literally a physical property that could be used for other purposes and it was a finite resource.

A great many people believe it is stupid but unfortunately changing those basic principles would require a literal revolution and a lot of civil unrest at the least.

This comment was edited on Jan 7, 2010, 11:10.
 
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7. Re: GameStop Financials Jan 7, 2010, 10:59 InBlack
 
I think I know what you are talking about, its called "expectation" and is the basis for a percieved value of company shares.

I know its complicated but I think that any smart investor should probably dig a little deeper when investing their money. I would.

Besides that, a perfectly good company share price might drop significantly if people start to sell out just based on lower growth. I mean as long as its still growing why panic?

It all might make sense commercially but I still dislike it. Its not like any company can grow infinitely right? Thinking of value as a direct correlation of growth is borderline insane if you ask me, we live on a planet with limited resources after all...

This comment was edited on Jan 7, 2010, 11:00.
 
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6. Re: GameStop Financials Jan 7, 2010, 10:59 Stormsinger
 
Verno wrote on Jan 7, 2010, 10:39:
Growth is a pretty basic part of the equation with regards to profit and sales anyways. Let's say you have $10,000 to invest in a videogames company InBlack. Do you want to invest it in the company that is making money and showing signs of continuing to make more? Or do you want to invest it in the company that appears stagnant or worse?

Certainly you're correct in today's real world, but there's no reason why it -has- to be that way. Growth is not a requirement to make a profit, and profit is what makes money for actual investors. Growth is primarily important to market speculators, who make their money from stock prices. In other words, it's not a -real- value...it's just an illusion that props up the fictional value on the exchange (think the difference between gold-backed and fiat dollars).

Myself, I'd really rather find a company that had a steady and -sustainable- profit to invest in, rather than looking at the illusionary value of the stock market. But I'll admit that this is a philosophical stance, and probably not the one most likely to maximize my profit.
 
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5. Re: GameStop Financials Jan 7, 2010, 10:39 Verno
 
People tend to want return on their investment and growth is a pretty big indicator of success. It's also an important metric for consumers, companies without growth potential have problems getting credit, extending inventories and expanding their business.

Growth is a pretty basic part of the equation with regards to profit and sales anyways. Let's say you have $10,000 to invest in a videogames company InBlack. Do you want to invest it in the company that is making money and showing signs of continuing to make more? Or do you want to invest it in the company that appears stagnant or worse?

You're thinking of it in terms of some shady board of directors type group who is sitting on large sacks of money, fanning themselves with $100 bills and sipping champagne. The reality is that most publicly traded companies have literally thousands and thousands of investors, some of them just regular folk like you and me. "Greed" is what drives the market really and its not some inherently evil concept. When I'm building my retirement portfolio, I don't really care what random gamer #0819 thinks my motives are, I just want to make money so that I can not live in a box when I'm older.

This comment was edited on Jan 7, 2010, 10:43.
 
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4. Re: GameStop Financials Jan 7, 2010, 10:28 InBlack
 
I dont understand the obsession with "growth". Why does every company want to "grow" or even need to grow every single year.

Whats even worse is the terror that less growth inspires in company executives.

"OH MY GOD, we saw an increase in sales of 5% this year compared to a 10% that we head last year! OH NO THE WORLD IS GOING TO END"

Jesus Christ, its not like you are making LESS money this year than last, its just that your profits were less than you expected.

Its a greedy and fucked up world we live in...
 
Avatar 46994
 
I have a nifty blue line!
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3. Re: GameStop Financials Jan 7, 2010, 10:22 DG
 
"Hardware sales declined 8% due to recent console price cuts and a decline in unit sales on a year-over-year basis."

Means sales in $ fell due to both each unit having a lower $ price that they did a year ago (so having sold the same number of units would have resulted in less sales $), and also from selling less units (so even if the $ price per unit had been the same they would have made less total sales $).

100 units at $100 each = $10,000
94 units at $98 each = $9,200
 
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2. Re: GameStop Financials Jan 7, 2010, 10:15 Verno
 
Basically, year to year sales were down in console hardware and Gamestop growth was relatively stagnant thanks to increased competition in used game sales from other B&M's. To be fair all consoles had an upswing at the end of the year due to pricecuts but not enough to make up for 3/4 of a year of poor growth.  
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1. Re: GameStop Financials Jan 7, 2010, 10:09 |RaptoR|
 
When has anything GameStop related made sense? It's the only chain in the world I'd love to see fail. They hire shlubs who are condescending little fucktard knowitalls, they sell terrible products, remove games from their cases and sell them at full retail, carry a shit selection, peddle used games at a ridiculous price, damnit I could go on. Useless waste of brick and mortar.

When Guitar Hero 2 came out on the 360, the kid scoffed at me that I hadn't preordered it. He started ranting and raving that I'd never find a copy in a million years. Best Buy had them pyramid stacked 15 high. Good job kid.

And when they push the preorder system so much you'd at least expect they get that shit right. I prepaid for Rock Band full kit, went to the midnight release... and all they had was the guitar version. Not even a my bad, we fucked up. Useless fuckbags.

So many horror stories with this troupe of douchebags. Best to avoid. The only case where I'd willingly give wal-mart business over another.

/rant
//nerdrage
 
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