How Important Is The Retail & Technology Brands Segment For GameStop?
GameStop‘s (NYSE:GME) retail & technology brands business contributes almost 40% to the company’s value as per our estimates, despite accounting for just 26% of its revenues. This is because the retail & technology brands’ segment is a more profitable business with gross margins at around 44%, as opposed to GameStop’s remaining segments, where gross margins are lower at 27%. Additionally, revenues for the retail & technology brands side of the business are expected to rise at CAGR (compound annual growth rate) of 6.3% through to 2021, while revenues from other segments are expected to shrink at a CAGR of 0.4%. The company’s retail & technology brand business is expected to grow strongly on the back of rapid acquisition and expansion of technology brand stores.
[trefis_forecast ticker=”GME” rhs=”0604″]
Have more questions on GameStop (NYSE: GME)? See the links below:
- How Has GameStop’s Revenue And Gross Profit Composition Changed Over 2011-2015?
- By What Percentage Have GameStop’s Revenues And Gross Profits Grown Over The Last Five Years?
- What’s GameStop’s Fundamental Value Based On Expected 2016 Results?
- GameStop Q4 Earnings Preview: Technology Brands & Digital Segment To Remain The Highlight; Core Segments Struggle
- What Is GameStop’s Revenue & Gross Profit Breakdown?
- Gamestop’s Year 2015 In Focus: Technology Brands & Digital Segment Drive Margins; Core Business Witnesses Slump
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