GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME), a global, multichannel video game, consumer electronics and wireless services retailer, today reported sales and earnings for the fourth quarter and fiscal year ended Feb. 1, 2014.

Paul Raines, chief executive officer, stated, “The launch of new consoles in 2013 marked the return of innovation to the video game category and GameStop's market share increased to an all-time high. Our emerging digital and mobile businesses, which did not exist three years ago, surpassed $1 billion of revenue. As we push forward into 2014, both the re-energized video game category and our new Technology Brands business unit provide us with solid growth opportunities in the consumer electronics and wireless markets.”

Fourth Quarter Results

Total global sales for the 13-week fourth quarter of 2013 were $3.68 billion, a 3.4% increase compared to $3.56 billion in the 14-week prior year quarter. Consolidated comparable store sales increased 7.8% compared to the prior year quarter. The growth in sales and comps was driven by the successful launches of Microsoft’s Xbox One and Sony’s PlayStation 4.

GameStop’s fourth quarter net earnings were $220.5 million, including goodwill and asset impairment charges, compared to net earnings of $261.1 million in the prior year quarter. Diluted earnings per share were $1.89 compared to diluted earnings per share of $2.15 in the prior year quarter.

Fourth quarter net earnings included goodwill and asset impairment charges of $28.7 million ($22.8 million, net of tax benefits), or $0.20 per diluted share, primarily due to the closure of Spawn Labs and store asset impairments. The company also recorded a non-recurring benefit of $33.6 million ($20.9 million after tax), or $0.18 per diluted share, from a change in accounting estimates primarily related to redemption rates in our PowerUp Rewards and other customer liability programs. A reconciliation of non-GAAP adjusted net income to GAAP net income is included with this release (Schedule III).

Fiscal 2013 Results

For fiscal year 2013, total global sales were $9.04 billion, a 1.7% increase compared to $8.89 billion in fiscal 2012. Full year consolidated comparable store sales increased 3.8% compared to fiscal 2012, primarily driven by a 29.7% increase in new video game hardware sales related to the launches of Microsoft’s Xbox One and Sony’s PlayStation 4.

New video game software and pre-owned and value products sales declined 2.8% and 4.1%, respectively. Until the fourth quarter, these two categories were impacted by limited new title releases and a decrease in store traffic. For the full year, digital receipts increased 15.1% to $724.4 million, or $217.7 million of sales on a GAAP basis. Mobile and consumer electronics sales, which include Technology Brands revenues, increased 51.6% over 2012.

GameStop’s fiscal 2013 net earnings were $354.2 million, including the aforementioned charges and non-recurring benefit, compared to a net loss of $269.7 million, including restructuring, impairment and debt retirement expenses of $680.7 million ($672.7 million, net of tax benefit), in fiscal 2012. Diluted earnings per share were $2.99 compared to a loss per share of $2.13 in fiscal 2012.

Capital Allocation Update

During the fourth quarter of 2013, the company repurchased 1,037,800 shares, or $49.5 million of stock. For fiscal 2013, the company repurchased 6.28 million shares, or $258.3 million of stock. In addition, the company paid out $131 million in dividends during fiscal 2013.

For fiscal 2014, through March 20, GameStop has repurchased 555,200 shares at an average price of $37.17, or $20.6 million worth of stock. Currently, there is $436.5 million remaining on the existing repurchase authorization.

On March 4, 2014, the company announced a 20% increase of its regular annual cash dividend from $1.10 to $1.32 per share. On March 25, 2014, the company paid its quarterly dividend of $0.33 per share.

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