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GameStop Corporation (GME+2.20%) has submitted its 10-K filing for the fiscal year ended February 1, 2025.
The filing includes financial statements for the year, showing a decrease in net sales to $3.823 billion from $5.273 billion in the previous year. The decline is attributed to a decrease in sales across all major product categories, including hardware, software, and collectibles.
Gross profit for the year was $1.113 billion, down from $1.294 billion the previous year. Despite the decrease in gross profit, the gross profit margin increased to 29.1% from 24.5% due to a shift towards higher-margin products.
Selling, general, and administrative expenses decreased to $1.130 billion from $1.324 billion, reflecting the company's cost reduction efforts. However, as a percentage of net sales, these expenses increased to 29.6% from 25.1% due to the decline in sales.
GameStop reported a net income of $131.3 million for the year, compared to $6.7 million in the previous year. The increase in net income was primarily due to higher interest income and cost management.
The company announced a revised investment policy, including the addition of Bitcoin as a treasury reserve asset. The policy allows for investments in various securities, including cryptocurrencies, with oversight by the Investment Committee.
GameStop continues to focus on optimizing its retail business and achieving profitability through cost containment and expanding its addressable market with new product and service offerings.
The company closed 590 stores in the United States during the fiscal year and plans to continue optimizing its store portfolio in fiscal 2025.
GameStop's cash and cash equivalents increased significantly to $4.757 billion, primarily due to proceeds from at-the-market equity offerings.
The filing details various financial agreements, including the voluntary termination of a $250 million revolving credit facility and the continuation of French term loans with a remaining balance of $16.9 million.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the GameStop Corporation annual 10-K report dated March 25, 2025. To report an error, please email earnings@qz.com.