Earlier this year, GameStop was reporting plummeting share prices and a weaker-than-expected financial forecast. Today, the company says it is experiencing a sales surge thanks to demand for new gaming consoles.
Given ravenous customer demand for the Microsoft Xbox One and Sony PlayStation 4 consoles, GameStop reported a soaring 25 percent sales increase in its second quarter -- news of which uplifted shares by roughly 6 percent this morning.
Hardware sales grew 124.8 percent, next to software sales growth of 15.6 percent, the company said. Consumers clamored for new titles like Ubisoft’s Watch Dogs and Nintendo’s Mario Kart 8.
While GameStop has faltered in past quarters ahead of new console releases, when consumers typically shy away from purchasing games, “the second quarter demonstrates the power of the new console cycle,” said GameStop CFO Rob Lloyd in a statement.
GameStop is foreshadowing additional growth through the rest of the year. Company president Tony Bartel said that the 24 major games slated to be released for the holiday season represents “the best lineup in history.”
Other factors contributing to a doubling of the company’s net earnings over last year’s second quarter include 5.5 percent growth in its most lucrative category, pre-owned and value video game products. GameStop also reported 85.1 percent growth in the mobile and consumer electronics category.