Gamestop 3Q13 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings.

“The console video game market returned to growth during the third quarter and as we forecasted, is one of the most exciting categories in retail headed into the holiday season. Our comp growth of over 20% is the highest quarterly comp growth since May of 2008, and our earnings per share of $0.58 exceeded our guidance and grew by 52.6%.”

“As part of our continuing strategic work, we have spent time in the past year studying the ways in which technology products are distributed to consumers outside the gaming space. We believe synergies exist with our model, and it is clear to us that we have developed a platform of transferable core competencies for technology retailing at GameStop. Our real estate group manages and understands thousands of zip codes across America with deep landlord relationships and leverage, particularly in secondary or white space markets. Our human resources function is able to create hiring and training events in any geography. Our refurbishment operations position us to be leaders in buy-sell-trade in video games, electronics and mobile devices. Our global PowerUp Rewards loyalty program gives us deep data and insight around over 33 million consumers of technology products in stores and online. Lastly, our capital process allows us to evaluate investments in specialty retail with precision and velocity.”

“We invested heavily on our associates during the third quarter, including taking every one of them through a 3-hour certification process on the 2 consoles. We know that they are the most prepared staff in all of retail to help consumers make a well-informed console decision and to make sure that they have all the games and related accessories to have a great gaming experience.”

“We know omnichannel is driving total GameStop sales. 26% of gamestop.com visitors who do not buy online make a purchase in-store within 48 hours of their online visit, and 80% of survey customers stated they plan on visiting a store to purchase an item they saw on gamestop.com.”

“I think one of the things we’ve seen in the past is that with each introduction of a new console, pre-owned growth actually accelerates post that. And one of the reasons is because it provides a great value, right? These are going to be very attractively priced systems and practically priced games, and so in anticipation of that growth, we think that the opportunity to get some additional inventory is a great thing. ”

“anytime you’re seeing a base of 25 million, 26 million people and you’re seeing a very, very high percentage, 2/3 have been indicating very positive purchase interest, what it says to us is that the demand is very strong”