GameStop(GME) - 2024 Q4 - Annual Results

Net Sales and Revenue - Net sales for Q4 2024 were $1.794 billion, a decrease from $2.226 billion in Q4 2023[2] - Full-year net sales for 2023 were $5.273 billion, down from $5.927 billion in 2022[3] - Net sales for hardware and accessories were $1,094.6 million, accounting for 61.0% of total net sales for the 14 weeks ended February 3, 2024[20] - Total net sales for the 53 weeks ended February 3, 2024, were $5,272.8 million, with hardware and accessories contributing 56.8%[21] - Software sales accounted for 26.0% of total net sales for the 14 weeks ended February 3, 2024, amounting to $465.3 million[20] - Collectibles sales were $233.7 million, representing 13.0% of total net sales for the 14 weeks ended February 3, 2024[20] Net Income and Profitability - Net income for Q4 2024 was $63.1 million, up from $48.2 million in Q4 2023[2] - Full-year net income for 2023 was $6.7 million, compared to a net loss of $313.1 million in 2022[3] - Adjusted EBITDA for 2023 was $64.7 million, a significant improvement from ($192.7) million in 2022[3] - Net income for the 14 weeks ended February 3, 2024, was $63.1 million, compared to $48.2 million for the 13 weeks ended January 28, 2023[18] - Adjusted operating income for the weeks ended February 3, 2024, was $60.3 million, compared to $46.9 million for the same period in 2023[23] - Adjusted net income for the weeks ended February 3, 2024, was $67.7 million, compared to $48.9 million for the same period in 2023[23] - Adjusted EBITDA for the weeks ended February 3, 2024, was $88.0 million, compared to $82.5 million for the same period in 2023[25] - Adjusted earnings per share (diluted) for the weeks ended February 3, 2024, was $0.22, compared to $0.16 for the same period in 2023[23] Expenses and Costs - SG&A expenses for Q4 2024 were $359.2 million, or 20.0% of net sales, down from $453.4 million, or 20.4% of net sales, in Q4 2023[2] - Full-year SG&A expenses for 2023 were $1.324 billion, or 25.1% of net sales, compared to $1.681 billion, or 28.4% of net sales, in 2022[3] - Adjusted SG&A expenses for the weeks ended February 3, 2024, were $358.9 million, compared to $452.9 million for the same period in 2023[23] - Transformation costs for the weeks ended February 3, 2024, were $0.3 million, compared to $0.5 million for the same period in 2023[23] - Asset impairments for the weeks ended February 3, 2024, were $4.8 million, compared to $0.2 million for the same period in 2023[23] Cash Flow and Liquidity - Cash, cash equivalents, and marketable securities totaled $1.199 billion at the end of Q4 2024[2] - Cash and cash equivalents decreased to $921.7 million in February 2024 from $1,139.0 million in January 2023[17] - Net cash flows used in operating activities were $203.7 million for the 53 weeks ended February 3, 2024, compared to $108.2 million provided by operating activities for the 52 weeks ended January 28, 2023[19] - Net cash flows provided by investing activities were $20.6 million for the 14 weeks ended February 3, 2024, compared to $19.1 million used in investing activities for the 13 weeks ended January 28, 2023[18] - Free cash flow for the weeks ended February 3, 2024, was -$18.7 million, compared to $326.6 million for the same period in 2023[28] - Net cash flows used in operating activities for the weeks ended February 3, 2024, were -$11.0 million, compared to $338.2 million for the same period in 2023[28] - Capital expenditures for the weeks ended February 3, 2024, were $7.7 million, compared to $11.6 million for the same period in 2023[28] Gross Profit - Gross profit for Q4 2024 was $419.2 million, or 23.4% of net sales, down from $499.8 million, or 22.4% of net sales, in Q4 2023[8] - Full-year gross profit for 2023 was $1.294 billion, or 24.5% of net sales, compared to $1.372 billion, or 23.1% of net sales, in 2022[15] Inventory and Assets - Merchandise inventories decreased to $632.5 million in February 2024 from $682.9 million in January 2023[17] - Total assets decreased to $2,709.0 million in February 2024 from $3,113.4 million in January 2023[17]