GameStop (NYSE: GME) posted its latest financial results for Q4 and fiscal year 2024, reporting quarterly net sales of $1.28 billion, down significantly from $1.79 billion in the same period last year.
In the fourth quarter, gross profit margins expanded to 28.3% from 23.4% a year ago, suggesting tighter control over cost of sales. SG&A expenses totaled $282.5 million, an improvement from $359.2 million in last year’s fourth quarter—an over 21% decrease. The combination of reduced operating costs and strategic expense management translated into an operating earnings margin of 6.2%, up from 3.1% in the previous fourth quarter.
However, net income for the quarter reached $131.3 million, an increase compared to the $63.1 million it posted a year ago. Adjusted EBITDA came in at $96.5 million, up from $88.0 million for the prior year’s fourth quarter.
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For the full year, net sales dropped to $3.82 billion from $5.27 billion in fiscal year 2023. SG&A expenses for the year stood at $1.130 billion, down from $1.324 billion a year earlier.
Despite the declining top line, GameStop’s full-year net income surged to $131.3 million, a jump from the $6.7 million earned the previous fiscal year. While the bottom line recorded a remarkable leap, the underlying trend of shrinking sales raises valid concerns about sustaining future profitability. Adjusted EBITDA however landed at $36.1 million in fiscal year 2024, down from $64.7 million in 2023.
Hardware and accessories remained GameStop’s largest revenue contributor, although these sales declined from last year. Software sales also fell, reflecting the broader industry shift toward digital downloads and direct-to-consumer online platforms. Collectibles, however, showed a relative increase in its share of total sales.
One of the most striking developments is GameStop’s strong cash position, closing the quarter with $4.775 billion in cash, cash equivalents, and marketable securities, compared to $921.7 million at the same time last year. This significant jump stems, in part, from new share offerings and management of working capital.
The company said it will not hold a conference call for the earnings results.
GameStop last traded at $25.40 on the NYSE.
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