GameStop(US:GME) ZACKSยท2025-03-26 15:55Core Insights - GameStop Corp. (GME) reported fourth-quarter fiscal 2024 results with a decline in net sales but an improvement in adjusted earnings per share compared to the previous year [1][2]. Financial Performance - Adjusted earnings per share for GME were 30 cents, surpassing the Zacks Consensus Estimate of 9 cents and up from 22 cents in the prior-year quarter [2]. - Net sales totaled $1,282.6 million, missing the consensus estimate of $1,450 million and representing a 28.5% decrease from $1,793.6 million in the year-ago quarter [3]. Sales Breakdown - Hardware and accessories sales fell 33.7% to $725.8 million from $1.09 billion in the year-ago quarter [4]. - Software sales decreased by 38.5% to $286.2 million from $465.3 million in the prior-year quarter [4]. - Collectibles sales increased by 15.8% to $270.6 million from $233.7 million in the year-ago quarter [4]. Margins and Expenses - Gross profit decreased by 13.3% to $363.4 million from $419.2 million in the year-ago quarter, but gross margin expanded by 490 basis points to 28.3% [5]. - Adjusted selling, general and administrative (SG&A) expenses declined by 22.3% to $279 million from $358.9 million in the prior-year quarter, with SG&A expenses as a percentage of net sales increasing to 21.8% [5]. EBITDA and Operating Income - Adjusted EBITDA was $96.5 million, up 9.7% from $88 million in the same quarter last year, with an adjusted EBITDA margin expansion of 260 basis points to 7.5% [6]. - Adjusted operating income rose to $84.4 million from $60.3 million in the prior-year period, with an adjusted operating margin increase of 320 basis points to 6.6% [6]. Cash and Debt Overview - At the end of the fiscal fourth quarter, GameStop had cash and cash equivalents of $4.76 billion, marketable securities of $18 million, and net long-term debt of $6.6 million [9]. - Net merchandise inventory was $480.2 million, down from $632.5 million in the same period last year [9]. Cash Flow - For the 13 weeks ended February 1, 2025, net cash flow from operations was $162.3 million, with free cash flow totaling $158.8 million and capital expenditure at $3.5 million [10].