These 2 Charts Show GameStop's Biggest Problems

Motley Fool2022-03-31

KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

breAkdaWn
2022-04-01
breAkdaWn
The phenomenal rise of GME was never about its video games or about its many stores.
Remotecam
2022-04-01
Remotecam
I didn't realize $GameStop(GME)$has $1.3 billion in cash & only $50 million debt. That's amazing. All they need is find the right CEO to close 2000 stores, keep the best 1000 and they'd be printing money. Why make a big deal about buying a cheap gold mine? Wish I knew all this before the stock mooned... [Allin]
Jess261
2022-04-01
Jess261
Okay
JaiVenky
2022-04-01
JaiVenky
Great
TaiWoeiHaur
2022-04-01
TaiWoeiHaur
Good morning
SCLIEW
2022-04-01
SCLIEW
666

Leave a comment

221

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2223366311?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2022-03-31 21:19","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2223366311","market":"us","top_or_hot":-1,"title":"These 2 Charts Show GameStop's Biggest Problems","media":"Motley Fool","content":"<div>\n<p>KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These 2 Charts Show GameStop's Biggest Problems</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese 2 Charts Show GameStop's Biggest Problems\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-31 21:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GME","symbol_name":"游戏驿站","start_time":0,"source_url":"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/","article_id":"2223366311","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2223366311","pubTimestamp":1648732784,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"It's going to be tough for the video game retailer to get back on track.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"GME":"游戏驿站","BK4577":"网络游戏","BK4076":"电脑与电子产品零售","BK4547":"WSB热门概念"},"translate_title":"这两张图表显示了游戏驿站最大的问题","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GME":1},"content_text":"KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a profit.GameStop is closing stores and moving beyond video games as it attempts a turnaround.GameStop the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.A low-margin affairGameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren't exactly big moneymakers for retailers, GameStop's overall gross margin dropped to 22.4% last year. That's down from 29% in 2017, and it doesn't compare well to other retailers.Chart by author. Data source: GameStop, Walmart, Target, Best Buy.Small stores are expensive to runA low gross margin wouldn't be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer Best Buy, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.Running all those stores is not cheap.Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn't have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It's not working anymore.What's GameStop doing to fix this?The company is broadening its catalog of products, and it's having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.The bad news, at least for investors, is that GameStop's market cap has inflated to around $14 billion. That's about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9011363655,"gmtCreate":1648819747175,"gmtModify":1676534404265,"author":{"id":"3569809505691000","authorId":"3569809505691000","name":"breAkdaWn","avatar":"https://community-static.tradeup.com/news/4c3676c14de9bfcd6f45bcf7ba4ddb6c","vip":1,"crmLevel":1,"crmLevelSwitch":0},"htmlText":"The phenomenal rise of GME was never about its video games or about its many stores.&nbsp;","listText":"The phenomenal rise of GME was never about its video games or about its many stores.&nbsp;","text":"The phenomenal rise of GME was never about its video games or about its many stores.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9011363655","repostId":2223366311,"repostType":2,"repost":{"id":"2223366311","pubTimestamp":1648732784,"share":"https://www.laohu8.com/m/news/2223366311?lang=&edition=full","pubTime":"2022-03-31 21:19","market":"us","language":"en","title":"These 2 Charts Show GameStop's Biggest Problems","url":"https://stock-news.laohu8.com/highlight/detail?id=2223366311","media":"Motley Fool","summary":"It's going to be tough for the video game retailer to get back on track.","content":"<html><head></head><body><p><b>KEY POINTS</b></p><ul><li>The ongoing decline in used-game sales has pushed GameStop&#39;s gross margin well below that of other retailers.</li><li>High operating expenses tied to thousands of small stores make it hard to turn a profit.</li><li>GameStop is closing stores and moving beyond video games as it attempts a turnaround.</li></ul><p><b>GameStop</b> the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.</p><p><b>A low-margin affair</b></p><p>GameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.</p><p>With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren&#39;t exactly big moneymakers for retailers, GameStop&#39;s overall gross margin dropped to 22.4% last year. That&#39;s down from 29% in 2017, and it doesn&#39;t compare well to other retailers.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1da23bcdcc0c5e333d7e44cf98e0735a\" tg-width=\"700\" tg-height=\"524\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, Best Buy.</span></p><p><b>Small stores are expensive to run</b></p><p>A low gross margin wouldn&#39;t be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer <b>Best Buy</b>, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.</p><p>Running all those stores is not cheap.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/76577512e237e54098ebd87cc66830aa\" tg-width=\"700\" tg-height=\"525\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.</span></p><p>While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn&#39;t have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It&#39;s not working anymore.</p><p><b>What&#39;s GameStop doing to fix this?</b></p><p>The company is broadening its catalog of products, and it&#39;s having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.</p><p>The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.</p><p>The bad news, at least for investors, is that GameStop&#39;s market cap has inflated to around $14 billion. That&#39;s about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.</p><p>Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These 2 Charts Show GameStop's Biggest Problems</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese 2 Charts Show GameStop's Biggest Problems\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-31 21:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4076":"电脑与电子产品零售","GME":"游戏驿站","BK4547":"WSB热门概念","BK4577":"网络游戏"},"source_url":"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2223366311","content_text":"KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a profit.GameStop is closing stores and moving beyond video games as it attempts a turnaround.GameStop the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.A low-margin affairGameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren't exactly big moneymakers for retailers, GameStop's overall gross margin dropped to 22.4% last year. That's down from 29% in 2017, and it doesn't compare well to other retailers.Chart by author. Data source: GameStop, Walmart, Target, Best Buy.Small stores are expensive to runA low gross margin wouldn't be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer Best Buy, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.Running all those stores is not cheap.Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn't have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It's not working anymore.What's GameStop doing to fix this?The company is broadening its catalog of products, and it's having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.The bad news, at least for investors, is that GameStop's market cap has inflated to around $14 billion. That's about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9013752305,"gmtCreate":1648778619776,"gmtModify":1676534396829,"author":{"id":"4093854476996450","authorId":"4093854476996450","name":"Remotecam","avatar":"https://community-static.tradeup.com/news/f856a0a30bd0fa23a086fc678014e48b","vip":1,"crmLevel":6,"crmLevelSwitch":1},"htmlText":"I didn't realize <a href=\"https://ttm.financial/S/GME\">$GameStop(GME)$</a>has&nbsp;$1.3 billion in cash &amp; only&nbsp;$50 million&nbsp;debt.&nbsp; That's amazing.&nbsp; All they need is find the right CEO to close 2000 stores, keep the best 1000 and they'd be printing money.&nbsp;&nbsp;Why make a&nbsp;big deal about buying a cheap gold mine?&nbsp;Wish I knew all this before the stock mooned...&nbsp;[Allin]&nbsp;","listText":"I didn't realize <a href=\"https://ttm.financial/S/GME\">$GameStop(GME)$</a>has&nbsp;$1.3 billion in cash &amp; only&nbsp;$50 million&nbsp;debt.&nbsp; That's amazing.&nbsp; All they need is find the right CEO to close 2000 stores, keep the best 1000 and they'd be printing money.&nbsp;&nbsp;Why make a&nbsp;big deal about buying a cheap gold mine?&nbsp;Wish I knew all this before the stock mooned...&nbsp;[Allin]&nbsp;","text":"I didn't realize $GameStop(GME)$has $1.3 billion in cash & only $50 million debt. That's amazing. All they need is find the right CEO to close 2000 stores, keep the best 1000 and they'd be printing money. Why make a big deal about buying a cheap gold mine? Wish I knew all this before the stock mooned... [Allin]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9013752305","repostId":2223366311,"repostType":4,"repost":{"id":"2223366311","pubTimestamp":1648732784,"share":"https://www.laohu8.com/m/news/2223366311?lang=&edition=full","pubTime":"2022-03-31 21:19","market":"us","language":"en","title":"These 2 Charts Show GameStop's Biggest Problems","url":"https://stock-news.laohu8.com/highlight/detail?id=2223366311","media":"Motley Fool","summary":"It's going to be tough for the video game retailer to get back on track.","content":"<html><head></head><body><p><b>KEY POINTS</b></p><ul><li>The ongoing decline in used-game sales has pushed GameStop&#39;s gross margin well below that of other retailers.</li><li>High operating expenses tied to thousands of small stores make it hard to turn a profit.</li><li>GameStop is closing stores and moving beyond video games as it attempts a turnaround.</li></ul><p><b>GameStop</b> the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.</p><p><b>A low-margin affair</b></p><p>GameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.</p><p>With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren&#39;t exactly big moneymakers for retailers, GameStop&#39;s overall gross margin dropped to 22.4% last year. That&#39;s down from 29% in 2017, and it doesn&#39;t compare well to other retailers.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1da23bcdcc0c5e333d7e44cf98e0735a\" tg-width=\"700\" tg-height=\"524\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, Best Buy.</span></p><p><b>Small stores are expensive to run</b></p><p>A low gross margin wouldn&#39;t be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer <b>Best Buy</b>, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.</p><p>Running all those stores is not cheap.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/76577512e237e54098ebd87cc66830aa\" tg-width=\"700\" tg-height=\"525\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.</span></p><p>While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn&#39;t have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It&#39;s not working anymore.</p><p><b>What&#39;s GameStop doing to fix this?</b></p><p>The company is broadening its catalog of products, and it&#39;s having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.</p><p>The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.</p><p>The bad news, at least for investors, is that GameStop&#39;s market cap has inflated to around $14 billion. That&#39;s about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.</p><p>Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These 2 Charts Show GameStop's Biggest Problems</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese 2 Charts Show GameStop's Biggest Problems\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-31 21:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4076":"电脑与电子产品零售","GME":"游戏驿站","BK4547":"WSB热门概念","BK4577":"网络游戏"},"source_url":"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2223366311","content_text":"KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a profit.GameStop is closing stores and moving beyond video games as it attempts a turnaround.GameStop the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.A low-margin affairGameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren't exactly big moneymakers for retailers, GameStop's overall gross margin dropped to 22.4% last year. That's down from 29% in 2017, and it doesn't compare well to other retailers.Chart by author. Data source: GameStop, Walmart, Target, Best Buy.Small stores are expensive to runA low gross margin wouldn't be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer Best Buy, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.Running all those stores is not cheap.Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn't have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It's not working anymore.What's GameStop doing to fix this?The company is broadening its catalog of products, and it's having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.The bad news, at least for investors, is that GameStop's market cap has inflated to around $14 billion. That's about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9013700174,"gmtCreate":1648772667610,"gmtModify":1676534394841,"author":{"id":"3586490638953193","authorId":"3586490638953193","name":"Jess261","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Okay","listText":"Okay","text":"Okay","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9013700174","repostId":2223366311,"repostType":4,"repost":{"id":"2223366311","pubTimestamp":1648732784,"share":"https://www.laohu8.com/m/news/2223366311?lang=&edition=full","pubTime":"2022-03-31 21:19","market":"us","language":"en","title":"These 2 Charts Show GameStop's Biggest Problems","url":"https://stock-news.laohu8.com/highlight/detail?id=2223366311","media":"Motley Fool","summary":"It's going to be tough for the video game retailer to get back on track.","content":"<html><head></head><body><p><b>KEY POINTS</b></p><ul><li>The ongoing decline in used-game sales has pushed GameStop&#39;s gross margin well below that of other retailers.</li><li>High operating expenses tied to thousands of small stores make it hard to turn a profit.</li><li>GameStop is closing stores and moving beyond video games as it attempts a turnaround.</li></ul><p><b>GameStop</b> the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.</p><p><b>A low-margin affair</b></p><p>GameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.</p><p>With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren&#39;t exactly big moneymakers for retailers, GameStop&#39;s overall gross margin dropped to 22.4% last year. That&#39;s down from 29% in 2017, and it doesn&#39;t compare well to other retailers.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1da23bcdcc0c5e333d7e44cf98e0735a\" tg-width=\"700\" tg-height=\"524\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, Best Buy.</span></p><p><b>Small stores are expensive to run</b></p><p>A low gross margin wouldn&#39;t be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer <b>Best Buy</b>, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.</p><p>Running all those stores is not cheap.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/76577512e237e54098ebd87cc66830aa\" tg-width=\"700\" tg-height=\"525\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.</span></p><p>While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn&#39;t have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It&#39;s not working anymore.</p><p><b>What&#39;s GameStop doing to fix this?</b></p><p>The company is broadening its catalog of products, and it&#39;s having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.</p><p>The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.</p><p>The bad news, at least for investors, is that GameStop&#39;s market cap has inflated to around $14 billion. That&#39;s about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.</p><p>Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These 2 Charts Show GameStop's Biggest Problems</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese 2 Charts Show GameStop's Biggest Problems\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-31 21:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4076":"电脑与电子产品零售","GME":"游戏驿站","BK4547":"WSB热门概念","BK4577":"网络游戏"},"source_url":"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2223366311","content_text":"KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a profit.GameStop is closing stores and moving beyond video games as it attempts a turnaround.GameStop the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.A low-margin affairGameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren't exactly big moneymakers for retailers, GameStop's overall gross margin dropped to 22.4% last year. That's down from 29% in 2017, and it doesn't compare well to other retailers.Chart by author. Data source: GameStop, Walmart, Target, Best Buy.Small stores are expensive to runA low gross margin wouldn't be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer Best Buy, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.Running all those stores is not cheap.Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn't have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It's not working anymore.What's GameStop doing to fix this?The company is broadening its catalog of products, and it's having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.The bad news, at least for investors, is that GameStop's market cap has inflated to around $14 billion. That's about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9013489533,"gmtCreate":1648769641362,"gmtModify":1676534393241,"author":{"id":"3585210617348402","authorId":"3585210617348402","name":"JaiVenky","avatar":"https://static.tigerbbs.com/097793f3135b5fb8cb3f03847d72bf1a","vip":1,"crmLevel":3,"crmLevelSwitch":1},"htmlText":"Great","listText":"Great","text":"Great","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9013489533","repostId":2223366311,"repostType":4,"repost":{"id":"2223366311","pubTimestamp":1648732784,"share":"https://www.laohu8.com/m/news/2223366311?lang=&edition=full","pubTime":"2022-03-31 21:19","market":"us","language":"en","title":"These 2 Charts Show GameStop's Biggest Problems","url":"https://stock-news.laohu8.com/highlight/detail?id=2223366311","media":"Motley Fool","summary":"It's going to be tough for the video game retailer to get back on track.","content":"<html><head></head><body><p><b>KEY POINTS</b></p><ul><li>The ongoing decline in used-game sales has pushed GameStop&#39;s gross margin well below that of other retailers.</li><li>High operating expenses tied to thousands of small stores make it hard to turn a profit.</li><li>GameStop is closing stores and moving beyond video games as it attempts a turnaround.</li></ul><p><b>GameStop</b> the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.</p><p><b>A low-margin affair</b></p><p>GameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.</p><p>With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren&#39;t exactly big moneymakers for retailers, GameStop&#39;s overall gross margin dropped to 22.4% last year. That&#39;s down from 29% in 2017, and it doesn&#39;t compare well to other retailers.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1da23bcdcc0c5e333d7e44cf98e0735a\" tg-width=\"700\" tg-height=\"524\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, Best Buy.</span></p><p><b>Small stores are expensive to run</b></p><p>A low gross margin wouldn&#39;t be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer <b>Best Buy</b>, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.</p><p>Running all those stores is not cheap.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/76577512e237e54098ebd87cc66830aa\" tg-width=\"700\" tg-height=\"525\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.</span></p><p>While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn&#39;t have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It&#39;s not working anymore.</p><p><b>What&#39;s GameStop doing to fix this?</b></p><p>The company is broadening its catalog of products, and it&#39;s having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.</p><p>The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.</p><p>The bad news, at least for investors, is that GameStop&#39;s market cap has inflated to around $14 billion. That&#39;s about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.</p><p>Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These 2 Charts Show GameStop's Biggest Problems</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese 2 Charts Show GameStop's Biggest Problems\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-31 21:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4076":"电脑与电子产品零售","GME":"游戏驿站","BK4547":"WSB热门概念","BK4577":"网络游戏"},"source_url":"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2223366311","content_text":"KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a profit.GameStop is closing stores and moving beyond video games as it attempts a turnaround.GameStop the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.A low-margin affairGameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren't exactly big moneymakers for retailers, GameStop's overall gross margin dropped to 22.4% last year. That's down from 29% in 2017, and it doesn't compare well to other retailers.Chart by author. Data source: GameStop, Walmart, Target, Best Buy.Small stores are expensive to runA low gross margin wouldn't be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer Best Buy, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.Running all those stores is not cheap.Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn't have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It's not working anymore.What's GameStop doing to fix this?The company is broadening its catalog of products, and it's having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.The bad news, at least for investors, is that GameStop's market cap has inflated to around $14 billion. That's about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9013491170,"gmtCreate":1648767717713,"gmtModify":1676534392526,"author":{"id":"3563667765668803","authorId":"3563667765668803","name":"TaiWoeiHaur","avatar":"https://community-static.tradeup.com/news/4573ecee7a4a891ace3e5566a59069d5","vip":1,"crmLevel":5,"crmLevelSwitch":1},"htmlText":"Good morning&nbsp;","listText":"Good morning&nbsp;","text":"Good morning","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9013491170","repostId":2223366311,"repostType":4,"repost":{"id":"2223366311","pubTimestamp":1648732784,"share":"https://www.laohu8.com/m/news/2223366311?lang=&edition=full","pubTime":"2022-03-31 21:19","market":"us","language":"en","title":"These 2 Charts Show GameStop's Biggest Problems","url":"https://stock-news.laohu8.com/highlight/detail?id=2223366311","media":"Motley Fool","summary":"It's going to be tough for the video game retailer to get back on track.","content":"<html><head></head><body><p><b>KEY POINTS</b></p><ul><li>The ongoing decline in used-game sales has pushed GameStop&#39;s gross margin well below that of other retailers.</li><li>High operating expenses tied to thousands of small stores make it hard to turn a profit.</li><li>GameStop is closing stores and moving beyond video games as it attempts a turnaround.</li></ul><p><b>GameStop</b> the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.</p><p><b>A low-margin affair</b></p><p>GameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.</p><p>With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren&#39;t exactly big moneymakers for retailers, GameStop&#39;s overall gross margin dropped to 22.4% last year. That&#39;s down from 29% in 2017, and it doesn&#39;t compare well to other retailers.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1da23bcdcc0c5e333d7e44cf98e0735a\" tg-width=\"700\" tg-height=\"524\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, Best Buy.</span></p><p><b>Small stores are expensive to run</b></p><p>A low gross margin wouldn&#39;t be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer <b>Best Buy</b>, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.</p><p>Running all those stores is not cheap.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/76577512e237e54098ebd87cc66830aa\" tg-width=\"700\" tg-height=\"525\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.</span></p><p>While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn&#39;t have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It&#39;s not working anymore.</p><p><b>What&#39;s GameStop doing to fix this?</b></p><p>The company is broadening its catalog of products, and it&#39;s having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.</p><p>The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.</p><p>The bad news, at least for investors, is that GameStop&#39;s market cap has inflated to around $14 billion. That&#39;s about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.</p><p>Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These 2 Charts Show GameStop's Biggest Problems</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese 2 Charts Show GameStop's Biggest Problems\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-31 21:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4076":"电脑与电子产品零售","GME":"游戏驿站","BK4547":"WSB热门概念","BK4577":"网络游戏"},"source_url":"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2223366311","content_text":"KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a profit.GameStop is closing stores and moving beyond video games as it attempts a turnaround.GameStop the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.A low-margin affairGameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren't exactly big moneymakers for retailers, GameStop's overall gross margin dropped to 22.4% last year. That's down from 29% in 2017, and it doesn't compare well to other retailers.Chart by author. Data source: GameStop, Walmart, Target, Best Buy.Small stores are expensive to runA low gross margin wouldn't be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer Best Buy, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.Running all those stores is not cheap.Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn't have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It's not working anymore.What's GameStop doing to fix this?The company is broadening its catalog of products, and it's having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.The bad news, at least for investors, is that GameStop's market cap has inflated to around $14 billion. That's about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9013544164,"gmtCreate":1648766070433,"gmtModify":1676534391814,"author":{"id":"4092970777728640","authorId":"4092970777728640","name":"SCLIEW","avatar":"https://static.tigerbbs.com/5da553e4d3d35db75d1caae023ca8a03","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"666","listText":"666","text":"666","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9013544164","repostId":2223366311,"repostType":4,"repost":{"id":"2223366311","pubTimestamp":1648732784,"share":"https://www.laohu8.com/m/news/2223366311?lang=&edition=full","pubTime":"2022-03-31 21:19","market":"us","language":"en","title":"These 2 Charts Show GameStop's Biggest Problems","url":"https://stock-news.laohu8.com/highlight/detail?id=2223366311","media":"Motley Fool","summary":"It's going to be tough for the video game retailer to get back on track.","content":"<html><head></head><body><p><b>KEY POINTS</b></p><ul><li>The ongoing decline in used-game sales has pushed GameStop&#39;s gross margin well below that of other retailers.</li><li>High operating expenses tied to thousands of small stores make it hard to turn a profit.</li><li>GameStop is closing stores and moving beyond video games as it attempts a turnaround.</li></ul><p><b>GameStop</b> the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.</p><p><b>A low-margin affair</b></p><p>GameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.</p><p>With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren&#39;t exactly big moneymakers for retailers, GameStop&#39;s overall gross margin dropped to 22.4% last year. That&#39;s down from 29% in 2017, and it doesn&#39;t compare well to other retailers.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1da23bcdcc0c5e333d7e44cf98e0735a\" tg-width=\"700\" tg-height=\"524\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, Best Buy.</span></p><p><b>Small stores are expensive to run</b></p><p>A low gross margin wouldn&#39;t be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer <b>Best Buy</b>, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.</p><p>Running all those stores is not cheap.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/76577512e237e54098ebd87cc66830aa\" tg-width=\"700\" tg-height=\"525\" width=\"100%\" height=\"auto\"/><span>Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.</span></p><p>While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn&#39;t have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It&#39;s not working anymore.</p><p><b>What&#39;s GameStop doing to fix this?</b></p><p>The company is broadening its catalog of products, and it&#39;s having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.</p><p>The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.</p><p>The bad news, at least for investors, is that GameStop&#39;s market cap has inflated to around $14 billion. That&#39;s about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.</p><p>Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.</p></body></html>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These 2 Charts Show GameStop's Biggest Problems</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese 2 Charts Show GameStop's Biggest Problems\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-31 21:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4076":"电脑与电子产品零售","GME":"游戏驿站","BK4547":"WSB热门概念","BK4577":"网络游戏"},"source_url":"https://www.fool.com/investing/2022/03/31/these-2-charts-show-gamestops-biggest-problem/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2223366311","content_text":"KEY POINTSThe ongoing decline in used-game sales has pushed GameStop's gross margin well below that of other retailers.High operating expenses tied to thousands of small stores make it hard to turn a profit.GameStop is closing stores and moving beyond video games as it attempts a turnaround.GameStop the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.A low-margin affairGameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren't exactly big moneymakers for retailers, GameStop's overall gross margin dropped to 22.4% last year. That's down from 29% in 2017, and it doesn't compare well to other retailers.Chart by author. Data source: GameStop, Walmart, Target, Best Buy.Small stores are expensive to runA low gross margin wouldn't be a problem if GameStop kept a tight lid on operating expenses. But the nature of the business makes that impossible. Unlike electronics retailer Best Buy, GameStop operates a large number of small stores. The company runs over 4,500 stores globally, many of them in malls and outdoor shopping centers. In contrast, Best Buy operates just over 1,110 stores and generates nearly nine times as much annual revenue as GameStop does.Running all those stores is not cheap.Chart by author. Data source: GameStop, Walmart, Target, and Best Buy.While Best Buy can make up for a low gross margin by being ultra-efficient at running its big-box stores, GameStop doesn't have that option. The business worked when high-margin sales of used games were strong, offsetting the low margins of other products. It's not working anymore.What's GameStop doing to fix this?The company is broadening its catalog of products, and it's having some success. Sales related to PC gaming, including accessories and gaming laptops, soared 150% last year. E-commerce is also a big focus, and the company has been closing stores to reduce costs. It is also working on some non-fungible token projects, which certainly have some potential.The good news is that GameStop has a ton of cash to fund its turnaround. The company has nearly $1.3 billion in cash and less than $50 million in debt. It can lose heaps of money, like it did in 2021, for years before liquidity becomes a problem.The bad news, at least for investors, is that GameStop's market cap has inflated to around $14 billion. That's about two-thirds of the market cap of Best Buy. Even assuming the best-case scenario, its valuation requires some serious mental gymnastics to justify.Can GameStop make a comeback? Sure. But judging from these charts, the company has a lot of work to do, and a successful turnaround might not translate into a higher stock price.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":221,"commentSize":20,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2223366311"}