Stock Analysis on Net
AI Tokens
Stock Analysis on Net

GameStop Corp. (NYSE:GME)

This company has been moved to the archive! The financial data has not been updated since June 11, 2024.

Common-Size Income Statement

GameStop Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019
Net sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -75.46 -76.85 -77.58 -75.25 -70.48 -72.14
Gross profit 24.54% 23.15% 22.42% 24.75% 29.52% 27.86%
Selling, general, and administrative expenses -25.11 -28.36 -28.44 -29.75 -29.74 -24.07
Asset impairments -0.09 -0.05 -0.11 -0.30 -5.96 -12.26
Gain on sale of assets 0.00 0.00 0.00 0.64 0.00 0.00
Operating loss -0.65% -5.26% -6.13% -4.67% -6.18% -8.47%
Interest income 0.94 0.16 0.00 0.04 0.17 0.07
Interest expense 0.00 0.00 -0.45 -0.67 -0.60 -0.69
Interest income (expense), net 0.94% 0.16% -0.45% -0.63% -0.42% -0.62%
Other loss, net -0.04 0.00 0.00 0.00 0.00 0.00
Income (loss) from continuing operations before income taxes 0.25% -5.10% -6.58% -5.30% -6.60% -9.09%
Income tax (expense) benefit, net -0.12 -0.19 0.23 1.09 -0.58 -0.50
Net income (loss) from continuing operations 0.13% -5.28% -6.34% -4.22% -7.18% -9.59%
Income (loss) from discontinued operations, net of tax 0.00 0.00 0.00 -0.01 -0.10 1.47
Net income (loss) 0.13% -5.28% -6.34% -4.23% -7.28% -8.12%

Based on: 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02).

The financial trajectory over the analyzed six-year period indicates a transition from significant operational losses to a marginal return to profitability. This trend is driven primarily by aggressive cost management and a shift in the company's net financial position.

Gross Margin Performance
Gross profit margins have exhibited volatility, ranging from a peak of 29.52% in 2020 to a low of 22.42% in 2022. A modest recovery is observed in the most recent periods, with the margin improving to 24.54% by 2024. These fluctuations are directly tied to the cost of sales, which has remained high, consistently exceeding 70% of net sales.
Operating Expense Analysis
Selling, general, and administrative expenses showed a period of elevation between 2020 and 2023, peaking at 29.75% of net sales. However, a reduction to 25.11% by 2024 suggests an improvement in operational efficiency. Most notably, asset impairments, which represented a substantial 12.26% of net sales in 2019, have been nearly eliminated, falling to 0.09% by 2024.
Operating Loss Convergence
The operating loss has narrowed significantly over the period, moving from 8.47% of net sales in 2019 to 0.65% in 2024. The reduction in the operating deficit is largely attributable to the cessation of large-scale asset impairments and the recent contraction in administrative overhead.
Net Financial Position and Bottom Line
A fundamental shift is observed in interest dynamics. The company moved from a position of net interest expense (reaching 0.63% in 2021) to a position of net interest income, which climbed to 0.94% of net sales in 2024. This pivot in non-operating income was instrumental in offsetting the remaining operating loss, resulting in a net income of 0.13% in 2024, contrasting sharply with the net loss of 8.12% recorded in 2019.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?