Stock Analysis on Net

GameStop Corp. (NYSE:GME)

$22.49

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

Operating Profit Margin
since 2006

Microsoft Excel

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Calculation

GameStop Corp., operating profit margin, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28).

1 US$ in thousands


Operating Earnings (Loss)
Operating earnings demonstrated a generally positive trajectory from 2006 through 2012, peaking notably in 2009 at 675,119 thousand USD before experiencing a sharp decline to a loss of 41,600 thousand USD in 2013. Following this negative deviation, earnings rebounded strongly in 2014 to 573,500 thousand USD and remained positive through 2016, albeit with some fluctuations. However, from 2018 onwards, there is a marked downward trend with persistent losses each year, reaching a low point of -399,600 thousand USD in 2020 and continuing into negative territory through to 2024, though the losses appear to decline somewhat in magnitude towards the end of the period.
Net Sales
Net sales exhibited consistent growth from 2006 to 2012, ascending from approximately 3.09 billion USD to over 9.55 billion USD. This growth plateaued and slightly declined starting in 2013, with occasional minor fluctuations but generally trending downwards after 2017. From 2017 onwards, sales decreased significantly, dropping from around 9.22 billion USD to approximately 5.27 billion USD by 2024, indicating a substantial contraction in revenue generation capability over the latter years.
Operating Profit Margin
The operating profit margin follows a pattern that aligns with the trends in operating earnings. Margins improved steadily from 6.23% in 2006 to a peak of 7.67% in 2009, before starting a period of decline with a notable negative margin recorded in 2013 at -0.47%. Recovery followed with positive margins until 2017, but from 2018, the margins turned negative again and worsened sharply to -8.47% in 2019. Although margins improved somewhat from 2020 to 2024, they remained negative, hovering between -6.13% and -0.65%, which signals continuing operational challenges affecting profitability.
Overall Analysis
The data reveals that the company experienced strong growth and profitability in the period through 2012, characterized by increasing net sales and positive operating earnings and margins. However, a significant downturn commenced in 2013, marked by a loss in operating earnings and a negative profit margin, despite relatively stable revenues at that time. Although there was a brief recovery, the years following 2017 have been characterized by declining revenues coupled with sustained operating losses and negative margins. This pattern indicates potential structural or market challenges affecting the business, resulting in diminished financial performance and profitability over the most recent years.

Comparison to Competitors

GameStop Corp., operating profit margin, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28).