Cover
Cover - shares | 9 Months Ended | |
Oct. 29, 2022 | Dec. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 29, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-32637 | |
Entity Registrant Name | GameStop Corp. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-2733559 | |
Entity Address, Address Line One | 625 Westport Parkway | |
Entity Address, City or Town | Grapevine, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76051 | |
City Area Code | (817) | |
Local Phone Number | 424-2000 | |
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | GME | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 304,578,070 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001326380 | |
Current Fiscal Year End Date | --01-28 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 803.8 | $ 1,271.4 | $ 1,413 |
Marketable securities | 238.3 | 0 | 0 |
Receivables, net of allowance of $2.0, $5.1 and $3.3, respectively | 125.3 | 141.1 | 83.4 |
Merchandise inventories | 1,131.3 | 915 | 1,140.9 |
Prepaid expenses and other current assets | 283.1 | 271.3 | 275.8 |
Total current assets | 2,581.8 | 2,598.8 | 2,913.1 |
Property and equipment, net of accumulated depreciation of $981.4, $1,122.0 and $1,029.8, respectively | 138.5 | 163.6 | 179.6 |
Operating lease right-of-use assets | 523.2 | 586.6 | 615.8 |
Deferred income taxes | 14.3 | 16.3 | 0 |
Other noncurrent assets | 64.7 | 134 | 53.5 |
Total assets | 3,322.5 | 3,499.3 | 3,762 |
Current liabilities: | |||
Accounts payable | 888.4 | 471 | 711.5 |
Accrued liabilities and other current liabilities | 504.2 | 668.9 | 608.5 |
Current portion of operating lease liabilities | 186.2 | 210.7 | 211.9 |
Current portion of long-term debt | 9.9 | 4.1 | 1.4 |
Total current liabilities | 1,588.7 | 1,354.7 | 1,533.3 |
Long-term debt | 28.8 | 40.5 | 44.8 |
Operating lease liabilities | 349.6 | 393.7 | 409.7 |
Other long-term liabilities | 110.4 | 107.9 | 19.3 |
Total liabilities | 2,077.5 | 1,896.8 | 2,007.1 |
Stockholders’ equity: | |||
Class A common stock — $.001 par value; 1,000 shares authorized; 304.3, 303.6 and 303.6 shares issued and outstanding, respectively | 0.1 | 0.1 | 0.1 |
Additional paid-in capital | 1,606.4 | 1,577.5 | 1,567.9 |
Accumulated other comprehensive loss | (93.8) | (68.7) | (54.2) |
Retained (loss) earnings | (267.7) | 93.6 | 241.1 |
Total stockholders’ equity | 1,245 | 1,602.5 | 1,754.9 |
Total liabilities and stockholders’ equity | $ 3,322.5 | $ 3,499.3 | $ 3,762 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 |
Statement of Financial Position [Abstract] | |||
Receivables, net of allowances | $ 2 | $ 3.3 | $ 5.1 |
Accumulated depreciation | $ 981.4 | $ 1,029.8 | $ 1,122 |
Class A common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Class A common stock, shares authorized (in shares) | 1,000 | 1,000 | 1,000 |
Class A common stock, shares issued (in shares) | 304.3 | 303.6 | 303.6 |
Class A common stock, shares outstanding (in shares) | 304.3 | 303.6 | 303.6 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,186.4 | $ 1,296.6 | $ 3,700.8 | $ 3,756.8 |
Cost of sales | 894.8 | 978 | 2,828.5 | 2,787.2 |
Gross profit | 291.6 | 318.6 | 872.3 | 969.6 |
Selling, general and administrative expenses | 387.9 | 421.5 | 1,227.6 | 1,170.7 |
Asset impairments | 0 | 0 | 2.5 | 0.6 |
Operating loss | (96.3) | (102.9) | (357.8) | (201.7) |
Interest (income) expense and other, net | (3.7) | 0.8 | (3.3) | 26 |
Loss before income taxes | (92.6) | (103.7) | (354.5) | (227.7) |
Income tax expense | 2.1 | 1.7 | 6.8 | 6.1 |
Net loss | $ (94.7) | $ (105.4) | $ (361.3) | $ (233.8) |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.31) | $ (0.35) | $ (1.19) | $ (0.82) |
Diluted (in dollars per share) | $ (0.31) | $ (0.35) | $ (1.19) | $ (0.82) |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 304.2 | 303.6 | 304.1 | 286 |
Diluted (in shares) | 304.2 | 303.6 | 304.1 | 286 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (94.7) | $ (105.4) | $ (361.3) | $ (233.8) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (16.6) | 2.1 | (24.9) | (4.9) |
Net change in unrealized loss on available-for-sale securities | (0.2) | 0 | (0.2) | 0 |
Total comprehensive loss | $ (111.5) | $ (103.3) | $ (386.4) | $ (238.7) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Oct. 29, 2022 | Oct. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (361.3) | $ (233.8) |
Adjustments to reconcile net loss to net cash flows used in operating activities: | ||
Depreciation and amortization | 47.5 | 53.2 |
Stock-based compensation expense | 32.2 | 20.7 |
Gain on sale of digital assets | (7.1) | 0 |
Digital asset impairments | 33.9 | 0 |
Asset impairments | 2.5 | 0.6 |
Loss on disposal of property and equipment, net | 5.1 | 1.9 |
Loss on retirement of debt | 0 | 18.2 |
Other, net | 6.9 | (1.4) |
Changes in operating assets and liabilities: | ||
Receivables, net | 13.3 | 21 |
Merchandise inventories | (245) | (545.2) |
Prepaid expenses and other assets | (38.7) | (5.1) |
Prepaid income taxes and income taxes payable | 0.9 | (12.9) |
Accounts payable and accrued liabilities | 288.7 | 376.9 |
Operating lease right-of-use assets and lease liabilities | (7.7) | (18.1) |
Changes in other long-term liabilities | (1.2) | 0 |
Net cash flows used in operating activities | (230) | (324) |
Cash flows from investing activities: | ||
Proceeds from sale of digital assets | 77.4 | 0 |
Purchases of marketable securities | (237) | 0 |
Capital expenditures | (44.3) | (40.7) |
Other | 0.3 | (0.4) |
Net cash flows used in investing activities | (203.6) | (41.1) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of costs | 0 | 1,672.8 |
Repayments of revolver borrowings | 0 | (25) |
Payments of senior notes | 0 | (307.4) |
Settlement of stock-based awards | (3.3) | (136.6) |
Other | 0 | (0.1) |
Net cash flows (used in) provided by financing activities | (3.3) | 1,203.7 |
Exchange rate effect on cash, cash equivalents and restricted cash | (23.5) | (5.5) |
(Decrease) increase in cash, cash equivalents and restricted cash | (460.4) | 833.1 |
Cash, cash equivalents and restricted cash at beginning of period | 1,319.9 | 635 |
Cash, cash equivalents and restricted cash at end of period | $ 859.5 | $ 1,468.1 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Class A Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Loss) |
Beginning balance (in shares) at Jan. 30, 2021 | 261.2 | ||||
Beginning balance at Jan. 30, 2021 | $ 436.7 | $ 0.1 | $ 11 | $ (49.3) | $ 474.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (66.8) | (66.8) | |||
Foreign currency translation | 2.1 | 2.1 | |||
Stock-based compensation expense | 5.7 | 5.7 | |||
Settlement of stock-based awards (in shares) | 2 | ||||
Settlement of stock-based awards | (49.9) | (49.9) | |||
Issuance of common stock, net of cost (in shares) | 14 | ||||
Issuance of common stock, net of cost | 551.7 | 551.7 | |||
Ending balance (in shares) at May. 01, 2021 | 277.2 | ||||
Ending balance at May. 01, 2021 | 879.5 | $ 0.1 | 518.5 | (47.2) | 408.1 |
Beginning balance (in shares) at Jan. 30, 2021 | 261.2 | ||||
Beginning balance at Jan. 30, 2021 | 436.7 | $ 0.1 | 11 | (49.3) | 474.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (233.8) | ||||
Issuance of common stock, net of cost (in shares) | 34 | ||||
Ending balance (in shares) at Oct. 30, 2021 | 303.6 | ||||
Ending balance at Oct. 30, 2021 | 1,754.9 | $ 0.1 | 1,567.9 | (54.2) | 241.1 |
Beginning balance (in shares) at May. 01, 2021 | 277.2 | ||||
Beginning balance at May. 01, 2021 | 879.5 | $ 0.1 | 518.5 | (47.2) | 408.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (61.6) | (61.6) | |||
Foreign currency translation | (9.1) | (9.1) | |||
Stock-based compensation expense | 8.8 | 8.8 | |||
Settlement of stock-based awards (in shares) | 6.4 | ||||
Settlement of stock-based awards | (86.7) | (86.7) | |||
Issuance of common stock, net of cost (in shares) | 20 | ||||
Issuance of common stock, net of cost | 1,121.1 | 1,121.1 | |||
Ending balance (in shares) at Jul. 31, 2021 | 303.6 | ||||
Ending balance at Jul. 31, 2021 | 1,852 | $ 0.1 | 1,561.7 | (56.3) | 346.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (105.4) | (105.4) | |||
Foreign currency translation | 2.1 | 2.1 | |||
Stock-based compensation expense | 6.2 | 6.2 | |||
Ending balance (in shares) at Oct. 30, 2021 | 303.6 | ||||
Ending balance at Oct. 30, 2021 | 1,754.9 | $ 0.1 | 1,567.9 | (54.2) | 241.1 |
Beginning balance (in shares) at Jan. 29, 2022 | 303.6 | ||||
Beginning balance at Jan. 29, 2022 | 1,602.5 | $ 0.1 | 1,577.5 | (68.7) | 93.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (157.9) | (157.9) | |||
Foreign currency translation | (3.9) | (3.9) | |||
Stock-based compensation expense | 11.1 | 11.1 | |||
Settlement of stock-based awards | (1.1) | (1.1) | |||
Ending balance (in shares) at Apr. 30, 2022 | 303.6 | ||||
Ending balance at Apr. 30, 2022 | 1,450.7 | $ 0.1 | 1,587.5 | (72.6) | (64.3) |
Beginning balance (in shares) at Jan. 29, 2022 | 303.6 | ||||
Beginning balance at Jan. 29, 2022 | 1,602.5 | $ 0.1 | 1,577.5 | (68.7) | 93.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (361.3) | ||||
Ending balance (in shares) at Oct. 29, 2022 | 304.1 | ||||
Ending balance at Oct. 29, 2022 | 1,245 | $ 0.1 | 1,606.4 | (93.8) | (267.7) |
Beginning balance (in shares) at Apr. 30, 2022 | 303.6 | ||||
Beginning balance at Apr. 30, 2022 | 1,450.7 | $ 0.1 | 1,587.5 | (72.6) | (64.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (108.7) | (108.7) | |||
Foreign currency translation | (4.4) | (4.4) | |||
Stock-based compensation expense | 7.8 | 7.8 | |||
Settlement of stock-based awards (in shares) | 0.4 | ||||
Settlement of stock-based awards | (1.9) | (1.9) | |||
Ending balance (in shares) at Jul. 30, 2022 | 304 | ||||
Ending balance at Jul. 30, 2022 | 1,343.5 | $ 0.1 | 1,593.4 | (77) | (173) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (94.7) | (94.7) | |||
Foreign currency translation | (16.6) | (16.6) | |||
Stock-based compensation expense | 13.3 | 13.3 | |||
Settlement of stock-based awards (in shares) | 0.1 | ||||
Settlement of stock-based awards | (0.3) | (0.3) | |||
Net change in unrealized loss on available-for-sale securities | (0.2) | (0.2) | |||
Ending balance (in shares) at Oct. 29, 2022 | 304.1 | ||||
Ending balance at Oct. 29, 2022 | $ 1,245 | $ 0.1 | $ 1,606.4 | $ (93.8) | $ (267.7) |
General Information
General Information | 9 Months Ended |
Oct. 29, 2022 | |
Accounting Policies [Abstract] | |
General Information | General Information The Company GameStop Corp. (“GameStop,” “we,” “us,” “our,” or the “Company”) offers games, entertainment products and technology through its ecommerce properties and stores. We operate our business in four geographic segments: United States, Canada, Australia and Europe. The information contained in these condensed consolidated financial statements refers to continuing operations unless otherwise noted. Basis of Presentation and Consolidation The condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in our opinion, necessary for a fair presentation of the information for the periods presented. These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they exclude certain disclosures required under GAAP for complete consolidated financial statements. The accompanying condensed consolidated financial statements and notes are unaudited. The consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the 52 weeks ended January 29, 2022, as filed with the Securities and Exchange Commission ("SEC") on March 17, 2022 (the “2021 Annual Report on Form 10-K”). Due to the seasonal nature of our business, our results of operations for the nine months ended October 29, 2022 are not indicative of our future results for the 52 weeks ending January 28, 2023. Our fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day of January. Each of our fiscal years ending January 28, 2023 and January 29, 2022 consist of 52 weeks. All three and nine month periods presented herein contain 13 and 39 weeks, respectively. All references to years, quarters and months relate to fiscal periods rather than calendar periods. Our business, like that of many retailers, is seasonal, with the major portion of the net sales realized during the fourth quarter, which includes the holiday selling season. Stock Split On July 6, 2022, our Board of Directors declared a four-for-one stock split of our Class A common stock in the form of a stock dividend (the "Stock Split"). This dividend was distributed on July 21, 2022 to stockholders of record at the close of business on July 18, 2022. There was no net effect on total stockholders' equity, and the par value per share of our Class A stock remains unchanged at $0.001 per share after the Stock Split. All references made to share or per share amounts in the accompanying condensed consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the Stock Split. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying footnotes. We regularly evaluate the estimates related to our assets and liabilities, contingent assets and liabilities, and the reported amounts of revenues and expenses. In preparing these condensed consolidated financial statements, we have made our best estimates and judgments of certain amounts recognized in the condensed consolidated financial statements, giving due consideration to materiality. Changes in the estimates and assumptions that we have used could have a significant impact on our financial results. Actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 29, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Included below are certain updates related to policies included in Part II, Item 8 "Notes to Consolidated Financial Statements", Note 2 , Summary of Significant Accounting Policies," in the 2021 Annual Report on Form 10-K. Cash and Cash Equivalents and Restricted Cash Our cash and cash equivalents are carried at cost, which approximates market value, and consist primarily of highly-rated money market funds and investment grade short-term fixed income securities, including U.S. government and agency securities. Such investments with an original maturity of 90 days or less are classified as cash and cash equivalents on our Condensed Consolidated Balance Sheets. Restricted cash consists primarily of bank deposits that collateralize our obligations to vendors and landlords. The following table presents a reconciliation of cash, cash equivalents and restricted cash in our Condensed Consolidated Balance Sheets to total cash, cash equivalents and restricted cash in our Condensed Consolidated Statements of Cash Flows: October 29, October 30, January 29, Cash and cash equivalents $ 803.8 $ 1,413.0 $ 1,271.4 Restricted cash (1) 40.9 39.5 33.1 Long-term restricted cash (2) 14.8 15.6 15.4 Total cash, cash equivalents and restricted cash $ 859.5 $ 1,468.1 $ 1,319.9 _________________________________________________ (1) Recognized in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. (2) Recognized in other noncurrent assets on our Condensed Consolidated Balance Sheets. Investments We generally invest our excess cash in highly-rated money market funds and investment grade short-term fixed income securities, which consist of U.S. government and agency securities. Such investments with an original maturity in excess of 90 days and less than one year are classified as marketable securities on our Condensed Consolidated Balance Sheets. Our investments are classified as available-for-sale debt securities and reported at fair value. Unrealized holding gains and losses are recognized in accumulated other comprehensive income (loss) on our Condensed Consolidated Balance Sheets. Realized gains and losses upon sale or extinguishment are reported in interest (income) expense and other, net in our Condensed Consolidated Statements of Operations. Each reporting period, we evaluate whether declines in fair value below carrying value are due to expected credit losses, as well as our ability and intent to hold the investment until a forecasted recovery occurs. Digital Assets We account for digital assets in accordance with ASC 350, Intangibles-Goodwill and Other (Topic 350). Our digital assets are indefinite-lived intangible assets which are initially recorded at cost. Accordingly, if the fair market value at any point during the reporting period is lower than the carrying value, an impairment loss equal to the difference will be recognized in SG&A expenses in our Condensed Consolidated Statement of Operations. Impairment losses cannot be recovered for any subsequent increase in fair value until the sale or disposal of the asset. Gains on the sale of digital assets, if any, will be recognized based on the fair value upon sale or disposal of the assets in SG&A expenses in our Condensed Consolidated Statement of Operations. In January 2022, we entered into a partnership with Immutable X Pty Limited (“IMX”) and Digital Worlds NFTs Ltd. ("Digital Worlds") pursuant to which the Company was entitled to receive digital assets in the form of IMX tokens once certain milestones have been achieved. Upon entering the agreement, we recognized the fair value of noncurrent receivables and deferred income of $79.0 million. In February 2022, upon announcement of the agreement, we recognized the fair value of noncurrent receivables and deferred income of $31.7 million. Noncurrent receivables and deferred income are recognized in other noncurrent assets and other long-term liabilities, respectively, on our Condensed Consolidated Balance Sheets. Once the IMX tokens were received, we recorded the digital asset as an indefinite-lived intangible asset and derecognized the noncurrent receivable. The deferred income is recognized over the term of the agreement. During the three and nine months ended October 29, 2022, we recognized $13.9 million and $41.7 million, respectively, of income in SG&A expenses in our Condensed Consolidated Statement of Operations. In February 2022, we sold the digital assets related to this transaction and recognized a gain on sale of $6.9 million in SG&A expenses in our Condensed Consolidated Statement of Operations. During the second quarter of 2022, we launched beta versions of a non-custodial digital asset wallet and a peer-to-peer non-fungible token ("NFT") marketplace that will enable purchases, sales, and trades of NFTs. Revenues earned related to our NFT digital asset wallet and marketplace are recognized in net sales in our Condensed Consolidated Statement of Operations. Revenues earned from our digital asset wallet and NFT marketplace were not material to the condensed consolidated financial statements for the three and nine months ended October 29, 2022. At-the-Market Equity Offering During the nine months ended October 30, 2021, we sold an aggregate of 34,000,000 shares of our common stock under two at-the market equity offering programs (the "ATM Transactions"). We generated $1.68 billion in aggregate gross proceeds from sales under the ATM Transactions and paid an aggregate of $10.1 million in commissions to the sales agent, among other legal and administrative fees. These commissions and fees were recognized in additional paid-in capital on our Condensed Consolidated Balance Sheets and SG&A expenses in our Condensed Consolidated Statements of Operations. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Oct. 29, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Standards In March 2022, the SEC staff released Staff Accounting Bulletin No. 121 ("SAB 121"), which requires entities that hold crypto assets on behalf of platform users to recognize a liability to reflect the entity’s obligation to safeguard the crypto assets held for its platform users, whether directly or through an agent or another third party acting on its behalf, along with a corresponding safeguarding asset. Both the liability and corresponding safeguarding asset shall be measured at fair value. SAB 121 also requires disclosure of the nature and amount of crypto assets being safeguarded, how the fair value is determined, an entity's accounting policy for safeguarding liabilities and corresponding safeguarding assets, and may require disclosure of other information about risks and uncertainties arising from the entity's safeguarding activities. For crypto assets that are not maintained on our platform and for which the Company does not maintain a private key or the ability to recover a customer’s private key, these balances are not recorded, as there is no related safeguarding obligation in accordance with SAB 121. This guidance is effective from the first interim period after June 15, 2022 and should be applied retrospectively. We adopted SAB 121 during the second quarter of 2022, with no impact on our condensed consolidated financial statements. |
Revenue
Revenue | 9 Months Ended |
Oct. 29, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table presents net sales by significant product category: Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, Hardware and accessories (1) $ 627.0 $ 669.9 $ 1,897.2 $ 1,983.0 Software (2) 352.1 434.5 1,152.2 1,229.0 Collectibles 207.3 192.2 651.4 544.8 Total net sales $ 1,186.4 $ 1,296.6 $ 3,700.8 $ 3,756.8 __________________________________________________ (1) Includes sales of new and pre-owned hardware, accessories, hardware bundles in which hardware and digital or physical software are sold together in a single SKU, interactive game figures, strategy guides, mobile and consumer electronics. (2) Includes sales of new and pre-owned gaming software, digital software, and PC entertainment software. See Note 9 , "Segment Information," for net sales by geographic location. Performance Obligations We have arrangements with customers where our performance obligations are satisfied over time, which primarily relate to extended warranties and our Game Informer ® magazine. We expect to recognize revenue in future periods for remaining performance obligations we have associated with unredeemed gift cards, trade-in credits, reservation deposits and our PowerUp Rewards loyalty program (collectively, "unredeemed customer liabilities"), extended warranties, and subscriptions to our Game Informer ® magazine. Performance obligations associated with unredeemed customer liabilities are primarily satisfied at the time customers redeem gift cards, trade-in credits, customer deposits or loyalty program points for products that we offer. Unredeemed customer liabilities are generally redeemed within one year of issuance. We offer extended warranties on certain new and pre-owned products with terms generally ranging from 12 to 24 months, depending on the product. Revenues for extended warranties sold are recognized on a straight-line basis over the life of the contract. Performance obligations associated with subscriptions to Game Informer ® magazine are satisfied when periodic magazines are delivered in print form or made available in digital format. The following table presents our performance obligations recognized in accrued liabilities and other current liabilities on our Condensed Consolidated Statements of Operations: October 29, October 30, Unredeemed customer liabilities $ 204.9 $ 226.9 Extended warranties 80.2 66.7 Magazine subscriptions 44.0 45.1 Total performance obligations $ 329.1 $ 338.7 Significant Judgments and Estimates We accrue PowerUp Rewards loyalty points at the estimated retail price per point, net of estimated breakage, which can be redeemed by loyalty program members for products we offer. The estimated retail price per point is based on the actual historical retail prices of products purchased through the redemption of loyalty points. We estimate breakage of loyalty points and unredeemed gift cards based on historical redemption rates. Contract Balances Our contract liabilities primarily consist of unredeemed customer liabilities and deferred revenues associated with gift cards, extended warranties and subscriptions to Game Informer ® magazine. The following table presents a rollforward of our contract liabilities: October 29, 2022 October 30, 2021 Contract liability beginning balance $ 378.3 $ 348.2 Increase to contract liabilities (1) 586.6 680.1 Decrease to contract liabilities (2) (630.7) (688.9) Other adjustments (3) (5.1) (0.7) Contract liability ending balance $ 329.1 $ 338.7 __________________________________________________ (1) Includes issuances of gift cards, trade-in credits and loyalty points, new reservation deposits, new subscriptions to Game Informer ® and extended warranties sold. (2) Includes redemptions of gift cards, trade-in credits, loyalty points and customer deposits and revenues recognized for Game Informer ® and extended warranties. During the nine months ended October 29, 2022 and October 30, 2021, there were $42.9 million and $41.6 million of gift cards redeemed that were outstanding as of January 29, 2022 and January 30, 2021, respectively. (3) Primarily includes foreign currency translation adjustments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 29, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Applicable accounting standards require disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. Each fair value measurement is reported in one of the following three levels: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable inputs other than quoted prices included in Level 1 for the asset or liability, either directly or indirectly through market-corroborated inputs. • Level 3 inputs are unobservable inputs for the asset or liability reflecting our assumptions about pricing by market participants. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis Assets and liabilities that are measured at fair value on a recurring basis include our cash equivalents, marketable securities, foreign currency contracts, company-owned life insurance policies with a cash surrender value, and certain nonqualified deferred compensation liabilities. We measure the fair value of cash equivalents and certain marketable securities based on quoted prices in active markets for identical assets or liabilities. Other marketable securities were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. We measure the fair value of our foreign currency contracts, life insurance policies with cash surrender values and certain nonqualified deferred compensation liabilities based on Level 2 inputs using quotations provided by major market news services, such as Bloomberg, and industry-standard models that consider various assumptions, including quoted forward prices, time value, volatility factors, and contractual prices for the underlying instruments, and other relevant economic measures, all of which are observable in active markets. When appropriate, valuations are adjusted to reflect credit considerations, generally based on available market evidence. The following table presents our assets and liabilities measured at fair value on a recurring basis: Level 1 Level 2 October 29, 2022 October 30, 2021 January 29, 2022 October 29, 2022 October 30, 2021 January 29, 2022 Assets U.S. government securities (1) $ 251.4 $ — $ — $ — $ — $ — Foreign currency contracts (2) — — — 2.7 4.1 3.8 Company-owned life insurance (3) — — — 0.5 3.0 0.6 Total assets $ 251.4 $ — $ — $ 3.2 $ 7.1 $ 4.4 Liabilities Foreign currency contracts (4) $ — $ — $ — $ — $ 0.1 $ 0.4 Nonqualified deferred compensation (4) — — — 0.4 0.6 0.6 Total liabilities $ — $ — $ — $ 0.4 $ 0.7 $ 1.0 _________________________________________________ (1) Recognized in cash and cash equivalents and marketable securities on our Consolidated Balance Sheets. (2) Recognized in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. (3) Recognized in other noncurrent assets on our Condensed Consolidated Balance Sheets. (4) Recognized in accrued liabilities and other current liabilities on our Condensed Consolidated Balance Sheets. Assets that are Measured at Fair Value on a Nonrecurring Basis Assets that are measured at fair value on a nonrecurring basis relate primarily to property and equipment, operating lease right-of-use ("ROU") assets and other intangible assets, including digital assets, which are remeasured when the estimated fair value is below its carrying value. When we determine that impairment has occurred, the carrying value of the asset is reduced to its fair value. Fair value of digital assets held are based on Level 2 inputs, as described above, and impairment losses for digital assets cannot be recovered for any subsequent increase in fair value until the sale or disposal of the asset. During the nine months ended October 29, 2022, we recognized impairment charges of $33.9 million associated with digital assets in SG&A expenses in our Condensed Consolidated Statements of Operations. These charges were recognized in the United States segment. During the nine months ended October 29, 2022, we recognized impairment charges of $2.5 million associated with certain store-level intangible assets to reflect their fair values in our Condensed Consolidated Statements of Operations. These charges were recognized in our Europe segment. During the nine months ended October 30, 2021, we recognized impairment charges of $0.6 million associated with store-level ROU assets to reflect their fair values in asset impairments in our Condensed Consolidated Statements of Operations. These charges were recognized in our United States segment. The carrying values of our cash, restricted cash, net receivables, accounts payable and current portion of debt approximate their fair values due to their short-term maturities. |
Debt
Debt | 9 Months Ended |
Oct. 29, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of October 29, 2022, October 30, 2021 and January 29, 2022, there was $38.7 million, $46.2 million and $44.6 million of outstanding debt. Total outstanding debt includes $9.9 million, $1.4 million and $4.1 million of short-term debt as of October 29, 2022, October 30, 2021 and January 29, 2022, respectively, which represents the current portion of the French Term Loans. During 2020, our French subsidiary, Micromania SAS, entered into six separate unsecured term loans for a total of €40.0 million, or $38.7 million, as of October 29, 2022. In the second quarter of 2021, at the request of Micromania SAS, these term loans were extended for five years, with an amortization plan for the principal starting in October 2022. The interest rate is 0.7% for three of the term loans totaling €20.0 million, and 1% for the remaining three term loans totaling €20.0 million. The French government has guaranteed 90% of the term loans pursuant to a state guaranteed loan program instituted in connection with the COVID-19 pandemic. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 29, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letter of Credit Facilities We maintain uncommitted letter of credit facilities with certain lenders that provide for the issuance of letters of credit and bank guarantees, at times supported by cash collateral. As of October 29, 2022, we had approximately $13.4 million of outstanding letters of credit and other bank guarantees under facilities outside of our $500 million revolving line of credit which matures in November 2026. During the nine months ended October 29, 2022, there were no material changes to our commitments as disclosed in our 2021 Annual Report on Form 10-K except as discussed in Note 6 , "Debt." Legal Proceedings In the ordinary course of business, we are, from time to time, subject to various legal proceedings, including matters involving wage and hour employee class actions, stockholder actions, and consumer class actions. We may enter into discussions regarding settlement of these and other types of lawsuits, and may enter into settlement agreements, if we believe settlement is in the best interest of our stockholders. We do not believe that any such existing legal proceedings or settlements, individually or in the aggregate, will have a material effect on our financial condition, results of operations or liquidity. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 29, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareBasic net income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding and potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options, unvested restricted stock and unvested restricted stock units outstanding during the period, using the treasury stock method. Potentially dilutive securities are excluded from the computations of diluted earnings per share if their effect would be anti-dilutive. A net loss from continuing operations causes all potentially dilutive securities to be anti-dilutive. We have certain undistributed stock awards that participate in dividends on a non-forfeitable basis, however, their impact on earnings per share under the two-class method is negligible. The following table presents a reconciliation of shares used in calculating basic and diluted net loss per common share: Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, Weighted-average common shares outstanding 304.2 303.6 304.1 286.0 Dilutive effect of restricted stock awards — — — — Weighted-average diluted common shares 304.2 303.6 304.1 286.0 Anti-dilutive shares: Restricted stock units 7.0 2.8 7.0 2.8 Restricted stock 0.3 1.6 0.3 1.6 As of October 29, 2022 and October 30, 2021 there were 7.3 million and 4.4 million, respectively, of unvested restricted stock and restricted stock units. As of October 29, 2022 and October 30, 2021 there were 311.6 million and 308.0 million, respectively, of shares of Class A common stock that are legally issued and outstanding or are unvested restricted share units that represent a right to one share of Class A Common Stock. As of October 29, 2022, 71.8 million shares of our Class A common stock were directly registered with our transfer agent. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 29, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate our business in four geographic segments: United States, Canada, Australia and Europe. We identified segments based on a combination of geographic areas and management responsibility. Segment results for the United States include retail operations in 50 states; our ecommerce operations; and Game Informer ® magazine. The United States segment also includes general and administrative expenses related to our corporate offices in the United States. Segment results for Canada include retail and ecommerce operations in Canada and segment results for Australia include retail and ecommerce operations in Australia and New Zealand. Segment results for Europe include retail and ecommerce operations in six countries. We measure segment profit using operating earnings, which is defined as income (loss) from operations before intercompany royalty fees, net interest (income) expense and income taxes. Transactions between reportable segments consist primarily of royalties, management fees, intersegment loans and related interest. There were no material intersegment sales during the three and nine months ended October 29, 2022 and October 30, 2021. United Canada Australia Europe Consolidated Three Months Ended October 29, 2022 Net sales $ 799.1 $ 67.9 $ 122.8 $ 196.6 $ 1,186.4 Operating loss (83.1) (4.0) (0.9) (8.3) (96.3) Three Months Ended October 30, 2021 Net sales $ 875.5 $ 68.3 $ 127.1 $ 225.7 $ 1,296.6 Operating (loss) earnings (98.5) (1.5) 0.7 (3.6) (102.9) United Canada Australia Europe Consolidated Nine Months Ended October 29, 2022 Net sales $ 2,587.9 $ 207.1 $ 363.3 $ 542.5 $ 3,700.8 Operating loss (308.7) (9.0) (1.9) (38.2) (357.8) Nine Months Ended October 30, 2021 Net sales $ 2,636.9 $ 193.0 $ 373.1 $ 553.8 $ 3,756.8 Operating (loss) earnings (152.3) (5.2) 3.9 (48.1) (201.7) |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Coronavirus Aid, Relief, and Economic Securities Act (the "CARES Act"), which was enacted on March 27, 2020 in the United States, included measures to assist companies, including temporary changes to income and non-income-based tax laws. As of October 29, 2022, we have a $168.6 million U.S. federal income tax receivable resulting from the carryback of net operating losses allowed pursuant to the CARES Act. Income tax receivable is recognized in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. Our interim tax provision was determined using an estimated annual effective tax rate and adjusted for discrete taxable events and/or adjustments that have occurred during the three and nine months ended October 29, 2022. We recognized an income tax expense of $2.1 million, or (2.3)%, for the three months ended October 29, 2022 compared to an income tax expense of $1.7 million, or (1.6)%, for the three months ended October 30, 2021. Our effective income tax rate for both periods is primarily due to not recognizing tax benefits on certain current period losses as well as forecasted income taxes due in certain foreign and state jurisdictions in which we operate. We recognized an income tax expense of $6.8 million, or (1.9)%, for the nine months ended October 29, 2022 compared to an income tax expense of $6.1 million, or (2.7)%, for the nine months ended October 30, 2021. Our effective income tax rate for both periods is primarily due to not recognizing tax benefits on certain current period losses as well as forecasted income taxes due in certain foreign and state jurisdictions in which we operate. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 29, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in our opinion, necessary for a fair presentation of the information for the periods presented. These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they exclude certain disclosures required under GAAP for complete consolidated financial statements. |
Fiscal Period | The accompanying condensed consolidated financial statements and notes are unaudited. The consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the 52 weeks ended January 29, 2022, as filed with the Securities and Exchange Commission ("SEC") on March 17, 2022 (the “2021 Annual Report on Form 10-K”). Due to the seasonal nature of our business, our results of operations for the nine months ended October 29, 2022 are not indicative of our future results for the 52 weeks ending January 28, 2023. Our fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day of January. Each of our fiscal years ending January 28, 2023 and January 29, 2022 consist of 52 weeks. All three and nine month periods presented herein contain 13 and 39 weeks, respectively. All references to years, quarters and months relate to fiscal periods rather than calendar periods. Our business, like that of many retailers, is seasonal, with the major portion of the net sales realized during the fourth quarter, which includes the holiday selling season. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying footnotes. We regularly evaluate the estimates related to our assets and liabilities, contingent assets and liabilities, and the reported amounts of revenues and expenses. In preparing these condensed consolidated financial statements, we have made our best estimates and judgments of certain amounts recognized in the condensed consolidated financial statements, giving due consideration to materiality. Changes in the estimates and assumptions that we have used could have a significant impact on our financial results. Actual results could differ from those estimates. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Our cash and cash equivalents are carried at cost, which approximates market value, and consist primarily of highly-rated money market funds and investment grade short-term fixed income securities, including U.S. government and agency securities. Such investments with an original maturity of 90 days or less are classified as cash and cash equivalents on our Condensed Consolidated Balance Sheets. Restricted cash consists primarily of bank deposits that collateralize our obligations to vendors and landlords. |
Investments | Investments We generally invest our excess cash in highly-rated money market funds and investment grade short-term fixed income securities, which consist of U.S. government and agency securities. Such investments with an original maturity in excess of 90 days and less than one year are classified as marketable securities on our Condensed Consolidated Balance Sheets. Our investments are classified as available-for-sale debt securities and reported at fair value. Unrealized holding gains and losses are recognized in accumulated other comprehensive income (loss) on our Condensed Consolidated Balance Sheets. Realized gains and losses upon sale or extinguishment are reported in interest (income) expense and other, net in our Condensed Consolidated Statements of Operations. Each reporting period, we evaluate whether declines in fair value below carrying value are due to expected credit losses, as well as our ability and intent to hold the investment until a forecasted recovery occurs. |
Digital Assets | Digital AssetsWe account for digital assets in accordance with ASC 350, Intangibles-Goodwill and Other (Topic 350). Our digital assets are indefinite-lived intangible assets which are initially recorded at cost. Accordingly, if the fair market value at any point during the reporting period is lower than the carrying value, an impairment loss equal to the difference will be recognized in SG&A expenses in our Condensed Consolidated Statement of Operations. Impairment losses cannot be recovered for any subsequent increase in fair value until the sale or disposal of the asset. Gains on the sale of digital assets, if any, will be recognized based on the fair value upon sale or disposal of the assets in SG&A expenses in our Condensed Consolidated Statement of Operations. |
Recently Adopted Accounting Standards | New Accounting Pronouncements Recently Adopted Accounting Standards In March 2022, the SEC staff released Staff Accounting Bulletin No. 121 ("SAB 121"), which requires entities that hold crypto assets on behalf of platform users to recognize a liability to reflect the entity’s obligation to safeguard the crypto assets held for its platform users, whether directly or through an agent or another third party acting on its behalf, along with a corresponding safeguarding asset. Both the liability and corresponding safeguarding asset shall be measured at fair value. SAB 121 also requires disclosure of the nature and amount of crypto assets being safeguarded, how the fair value is determined, an entity's accounting policy for safeguarding liabilities and corresponding safeguarding assets, and may require disclosure of other information about risks and uncertainties arising from the entity's safeguarding activities. For crypto assets that are not maintained on our platform and for which the Company does not maintain a private key or the ability to recover a customer’s private key, these balances are not recorded, as there is no related safeguarding obligation in accordance with SAB 121. This guidance is effective from the first interim period after June 15, 2022 and should be applied retrospectively. We adopted SAB 121 during the second quarter of 2022, with no impact on our condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash and Cash Equivalents | The following table presents a reconciliation of cash, cash equivalents and restricted cash in our Condensed Consolidated Balance Sheets to total cash, cash equivalents and restricted cash in our Condensed Consolidated Statements of Cash Flows: October 29, October 30, January 29, Cash and cash equivalents $ 803.8 $ 1,413.0 $ 1,271.4 Restricted cash (1) 40.9 39.5 33.1 Long-term restricted cash (2) 14.8 15.6 15.4 Total cash, cash equivalents and restricted cash $ 859.5 $ 1,468.1 $ 1,319.9 _________________________________________________ (1) Recognized in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. (2) Recognized in other noncurrent assets on our Condensed Consolidated Balance Sheets. |
Reconciliation of Restricted Cash | The following table presents a reconciliation of cash, cash equivalents and restricted cash in our Condensed Consolidated Balance Sheets to total cash, cash equivalents and restricted cash in our Condensed Consolidated Statements of Cash Flows: October 29, October 30, January 29, Cash and cash equivalents $ 803.8 $ 1,413.0 $ 1,271.4 Restricted cash (1) 40.9 39.5 33.1 Long-term restricted cash (2) 14.8 15.6 15.4 Total cash, cash equivalents and restricted cash $ 859.5 $ 1,468.1 $ 1,319.9 _________________________________________________ (1) Recognized in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. (2) Recognized in other noncurrent assets on our Condensed Consolidated Balance Sheets. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Sales and Percentage of Total Net Sales by Significant Product Category | The following table presents net sales by significant product category: Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, Hardware and accessories (1) $ 627.0 $ 669.9 $ 1,897.2 $ 1,983.0 Software (2) 352.1 434.5 1,152.2 1,229.0 Collectibles 207.3 192.2 651.4 544.8 Total net sales $ 1,186.4 $ 1,296.6 $ 3,700.8 $ 3,756.8 __________________________________________________ (1) Includes sales of new and pre-owned hardware, accessories, hardware bundles in which hardware and digital or physical software are sold together in a single SKU, interactive game figures, strategy guides, mobile and consumer electronics. (2) Includes sales of new and pre-owned gaming software, digital software, and PC entertainment software. |
Performance Obligations Associated with Subscriptions | The following table presents our performance obligations recognized in accrued liabilities and other current liabilities on our Condensed Consolidated Statements of Operations: October 29, October 30, Unredeemed customer liabilities $ 204.9 $ 226.9 Extended warranties 80.2 66.7 Magazine subscriptions 44.0 45.1 Total performance obligations $ 329.1 $ 338.7 |
Contract with Customer, Asset and Liability | The following table presents a rollforward of our contract liabilities: October 29, 2022 October 30, 2021 Contract liability beginning balance $ 378.3 $ 348.2 Increase to contract liabilities (1) 586.6 680.1 Decrease to contract liabilities (2) (630.7) (688.9) Other adjustments (3) (5.1) (0.7) Contract liability ending balance $ 329.1 $ 338.7 __________________________________________________ (1) Includes issuances of gift cards, trade-in credits and loyalty points, new reservation deposits, new subscriptions to Game Informer ® and extended warranties sold. (2) Includes redemptions of gift cards, trade-in credits, loyalty points and customer deposits and revenues recognized for Game Informer ® and extended warranties. During the nine months ended October 29, 2022 and October 30, 2021, there were $42.9 million and $41.6 million of gift cards redeemed that were outstanding as of January 29, 2022 and January 30, 2021, respectively. (3) Primarily includes foreign currency translation adjustments. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents our assets and liabilities measured at fair value on a recurring basis: Level 1 Level 2 October 29, 2022 October 30, 2021 January 29, 2022 October 29, 2022 October 30, 2021 January 29, 2022 Assets U.S. government securities (1) $ 251.4 $ — $ — $ — $ — $ — Foreign currency contracts (2) — — — 2.7 4.1 3.8 Company-owned life insurance (3) — — — 0.5 3.0 0.6 Total assets $ 251.4 $ — $ — $ 3.2 $ 7.1 $ 4.4 Liabilities Foreign currency contracts (4) $ — $ — $ — $ — $ 0.1 $ 0.4 Nonqualified deferred compensation (4) — — — 0.4 0.6 0.6 Total liabilities $ — $ — $ — $ 0.4 $ 0.7 $ 1.0 _________________________________________________ (1) Recognized in cash and cash equivalents and marketable securities on our Consolidated Balance Sheets. (2) Recognized in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. (3) Recognized in other noncurrent assets on our Condensed Consolidated Balance Sheets. (4) Recognized in accrued liabilities and other current liabilities on our Condensed Consolidated Balance Sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Used in Calculating Basic and Diluted Net Loss Per Common Share | The following table presents a reconciliation of shares used in calculating basic and diluted net loss per common share: Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, Weighted-average common shares outstanding 304.2 303.6 304.1 286.0 Dilutive effect of restricted stock awards — — — — Weighted-average diluted common shares 304.2 303.6 304.1 286.0 Anti-dilutive shares: Restricted stock units 7.0 2.8 7.0 2.8 Restricted stock 0.3 1.6 0.3 1.6 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Segment Reporting [Abstract] | |
Information on Segments and Reconciliation to Earnings Before Income Taxes | We identified segments based on a combination of geographic areas and management responsibility. Segment results for the United States include retail operations in 50 states; our ecommerce operations; and Game Informer ® magazine. The United States segment also includes general and administrative expenses related to our corporate offices in the United States. Segment results for Canada include retail and ecommerce operations in Canada and segment results for Australia include retail and ecommerce operations in Australia and New Zealand. Segment results for Europe include retail and ecommerce operations in six countries. We measure segment profit using operating earnings, which is defined as income (loss) from operations before intercompany royalty fees, net interest (income) expense and income taxes. Transactions between reportable segments consist primarily of royalties, management fees, intersegment loans and related interest. There were no material intersegment sales during the three and nine months ended October 29, 2022 and October 30, 2021. United Canada Australia Europe Consolidated Three Months Ended October 29, 2022 Net sales $ 799.1 $ 67.9 $ 122.8 $ 196.6 $ 1,186.4 Operating loss (83.1) (4.0) (0.9) (8.3) (96.3) Three Months Ended October 30, 2021 Net sales $ 875.5 $ 68.3 $ 127.1 $ 225.7 $ 1,296.6 Operating (loss) earnings (98.5) (1.5) 0.7 (3.6) (102.9) United Canada Australia Europe Consolidated Nine Months Ended October 29, 2022 Net sales $ 2,587.9 $ 207.1 $ 363.3 $ 542.5 $ 3,700.8 Operating loss (308.7) (9.0) (1.9) (38.2) (357.8) Nine Months Ended October 30, 2021 Net sales $ 2,636.9 $ 193.0 $ 373.1 $ 553.8 $ 3,756.8 Operating (loss) earnings (152.3) (5.2) 3.9 (48.1) (201.7) |
General Information (Details)
General Information (Details) | 9 Months Ended | |||
Jul. 06, 2022 $ / shares | Oct. 29, 2022 segment $ / shares | Jan. 29, 2022 $ / shares | Oct. 30, 2021 $ / shares | |
Accounting Policies [Abstract] | ||||
Number of reportable segments | segment | 4 | |||
Stock split, conversion ratio | 4 | |||
Class A common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 | Jan. 30, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 803.8 | $ 1,271.4 | $ 1,413 | |
Restricted cash | 40.9 | 33.1 | 39.5 | |
Long-term restricted cash | 14.8 | 15.4 | 15.6 | |
Total cash, cash equivalents and restricted cash | $ 859.5 | $ 1,319.9 | $ 1,468.1 | $ 635 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Digital Assets (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2022 | Oct. 29, 2022 | Oct. 29, 2022 | Oct. 30, 2021 | Jan. 29, 2022 | Jan. 30, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Contract liability beginning balance | $ 329.1 | $ 329.1 | $ 338.7 | $ 378.3 | $ 348.2 | |
Gain on sale | $ 6.9 | 7.1 | $ 0 | |||
Digital Assets | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Noncurrent receivable | 31.7 | 79 | ||||
Contract liability beginning balance | $ 31.7 | $ 79 | ||||
Deferred income recognized | $ 13.9 | $ 41.7 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - At-the-Market Equity Offering (Details) - Common Stock shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 shares | May 01, 2021 shares | Oct. 29, 2022 program | Oct. 30, 2021 USD ($) shares | |
Subsidiary or Equity Method Investee [Line Items] | ||||
Number of shares sold (in shares) | shares | 20 | 14 | 34 | |
Number of offering programs | program | 2 | |||
Gross proceeds from sale of common stock | $ 1,680 | |||
Fees paid to sales agent | $ 10.1 |
Revenue - Sales and Percentage
Revenue - Sales and Percentage of Total Net Sales by Significant Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 1,186.4 | $ 1,296.6 | $ 3,700.8 | $ 3,756.8 |
Hardware and accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 627 | 669.9 | 1,897.2 | 1,983 |
Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 352.1 | 434.5 | 1,152.2 | 1,229 |
Collectibles | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 207.3 | $ 192.2 | $ 651.4 | $ 544.8 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) | 9 Months Ended |
Oct. 29, 2022 | |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Extended warranty term | 12 months |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Extended warranty term | 24 months |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) - USD ($) $ in Millions | Oct. 29, 2022 | Oct. 30, 2021 |
Disaggregation of Revenue [Line Items] | ||
Total performance obligations | $ 329.1 | $ 338.7 |
Unredeemed customer liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Total performance obligations | 204.9 | 226.9 |
Extended warranties | ||
Disaggregation of Revenue [Line Items] | ||
Total performance obligations | 80.2 | 66.7 |
Magazine subscriptions | ||
Disaggregation of Revenue [Line Items] | ||
Total performance obligations | $ 44 | $ 45.1 |
Revenue - Change In Contract Li
Revenue - Change In Contract Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 29, 2022 | Oct. 30, 2021 | |
Contract With Customer, Contract Liabilities [Roll Forward] | ||
Contract liability beginning balance | $ 378.3 | $ 348.2 |
Increase to contract liabilities | 586.6 | 680.1 |
Decrease to contract liabilities | (630.7) | (688.9) |
Other adjustments | (5.1) | (0.7) |
Contract liability ending balance | 329.1 | 338.7 |
Gift Card Trade In Credits | ||
Contract With Customer, Contract Liabilities [Roll Forward] | ||
Revenue recognized | $ 42.9 | $ 41.6 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 |
Level 1 | |||
Assets | |||
U.S. government securities | $ 251.4 | $ 0 | $ 0 |
Foreign currency contracts | 0 | 0 | 0 |
Company-owned life insurance | 0 | 0 | 0 |
Total assets | 251.4 | 0 | 0 |
Liabilities | |||
Foreign currency contracts | 0 | 0 | 0 |
Nonqualified deferred compensation | 0 | 0 | 0 |
Total liabilities | 0 | 0 | 0 |
Level 2 | |||
Assets | |||
U.S. government securities | 0 | 0 | 0 |
Foreign currency contracts | 2.7 | 3.8 | 4.1 |
Company-owned life insurance | 0.5 | 0.6 | 3 |
Total assets | 3.2 | 4.4 | 7.1 |
Liabilities | |||
Foreign currency contracts | 0 | 0.4 | 0.1 |
Nonqualified deferred compensation | 0.4 | 0.6 | 0.6 |
Total liabilities | $ 0.4 | $ 1 | $ 0.7 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 29, 2022 USD ($) | Oct. 30, 2021 USD ($) | Oct. 29, 2022 USD ($) | Oct. 30, 2021 USD ($) | Jan. 30, 2021 EUR (€) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Digital asset impairments | $ 33.9 | $ 0 | |||
Asset impairments | $ 0 | $ 0 | 2.5 | $ 0.6 | |
Unsecured Debt | French Term Loans and Credit Facility | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt issued | 38.7 | 38.7 | € 40 | ||
Unsecured Debt | French term loans due in 2026 | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of debt | $ 32.7 | $ 32.7 |
Debt (Details)
Debt (Details) € in Millions, $ in Millions | 3 Months Ended | ||||
Jul. 31, 2021 EUR (€) loan | Oct. 29, 2022 USD ($) | Jan. 29, 2022 USD ($) | Oct. 30, 2021 USD ($) | Jan. 30, 2021 EUR (€) loan | |
Debt Disclosure [Line Items] | |||||
Net carrying value | $ | $ 38.7 | $ 44.6 | $ 46.2 | ||
Current debt | $ | (9.9) | $ (4.1) | $ (1.4) | ||
French Term Loans and Credit Facility | Unsecured Debt | |||||
Debt Disclosure [Line Items] | |||||
Number of separate unsecured term loans | 6 | ||||
Debt issued | $ 38.7 | € 40 | |||
Debt instrument, extension term | 5 years | ||||
Percent guaranteed by French government | 90% | ||||
French Term Loans At 0.7% | Unsecured Debt | |||||
Debt Disclosure [Line Items] | |||||
Number of separate unsecured term loans | 3 | ||||
Debt issued | € | € 20 | ||||
Interest rate | 0.70% | ||||
French Term Loans At 1% | Unsecured Debt | |||||
Debt Disclosure [Line Items] | |||||
Number of separate unsecured term loans | 3 | ||||
Debt issued | € | € 20 | ||||
Interest rate | 1% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Oct. 29, 2022 USD ($) |
Line of Credit Facility [Line Items] | |
Outstanding letters of credit and bank guarantees | $ 13.4 |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Line of credit, maximum borrowing capacity | $ 500 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Common Shares Used in Calculating Basic and Diluted Net Income (Loss) Per Common Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average common shares outstanding (in shares) | 304.2 | 303.6 | 304.1 | 286 |
Dilutive effect of restricted stock awards (in shares) | 0 | 0 | 0 | 0 |
Weighted-average diluted common shares (in shares) | 304.2 | 303.6 | 304.1 | 286 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive restricted stock units, restricted stock and stock options (in shares) | 7 | 2.8 | 7 | 2.8 |
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive restricted stock units, restricted stock and stock options (in shares) | 0.3 | 1.6 | 0.3 | 1.6 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - Common Class A shares in Millions | Oct. 29, 2022 shares | Oct. 30, 2021 shares |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Unvested restricted stock and restricted stock units (in shares) | 7.3 | 4.4 |
Common stock and unvested shares of restricted stock (in shares) | 311.6 | 308 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Conversion Ratio | 1 | |
ComputerShare | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock and unvested shares of restricted stock (in shares) | 71.8 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Oct. 29, 2022 country location segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 4 |
United States | |
Segment Reporting Information [Line Items] | |
Number of states the entity operates | location | 50 |
Europe | Retail and e-commerce | |
Segment Reporting Information [Line Items] | |
Number of countries in which the entity operates, during the period | country | 6 |
Segment Information - Sales by
Segment Information - Sales by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,186.4 | $ 1,296.6 | $ 3,700.8 | $ 3,756.8 |
Operating loss | (96.3) | (102.9) | (357.8) | (201.7) |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 799.1 | 875.5 | 2,587.9 | 2,636.9 |
Operating loss | (83.1) | (98.5) | (308.7) | (152.3) |
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 67.9 | 68.3 | 207.1 | 193 |
Operating loss | (4) | (1.5) | (9) | (5.2) |
Australia | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 122.8 | 127.1 | 363.3 | 373.1 |
Operating loss | (0.9) | 0.7 | (1.9) | 3.9 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 196.6 | 225.7 | 542.5 | 553.8 |
Operating loss | $ (8.3) | $ (3.6) | $ (38.2) | $ (48.1) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income taxes receivable | $ 168.6 | $ 168.6 | ||
Income tax expense | $ 2.1 | $ 1.7 | $ 6.8 | $ 6.1 |
Effective tax rate | (2.30%) | (1.60%) | (1.90%) | (2.70%) |