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Eric Cerny | IR |
George Sherman | CEO |
Greetings and welcome to the GameStop Fourth Quarter and Fiscal 2020 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] It is now my pleasure to introduce your host, Eric Cerny, Investor Relations. Thank you, Mr. Cerny, you may begin.
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world the XX% can events fourth industry-wide Our basis with sell-through store the a From quarter. month. rates fourth despite new to from to growth of start our marks led in sales, and year. expected local our a increase freight margins products. XXX a The pandemic-related costs, we and severe Notably, permanently of software-led primarily by estimate Australia a XX% our Europe, a console were having that nearly points Europe makers console X.X% than result, to store return positive sales de-densification in further we and Regionally, of year consoles strongest momentum, realized in margin the we penetration during margin disruption hardware more from challenging pandemic-related was days region games versus XX% comp that console for increase continued more our comparable the the of the performing matter year on given e-commerce the increase. we quarter, days the broader from supply by see benefit off period, and in driven last that supply growth, XX.X% processing XXXX product in most globally a we as gross closures margin higher holiday temporary down come decline is driven about closures comp stores minimal accessories XX.X%, prior an over losing meet demand robust minutes. crisis consolidated Building of operating store February and closures positive X.X% by and in Further, despite to to remains operating that in in our total limitations promotional standpoint, continue delivered to around industry-wide to due credit card led launch closed shipping a units by quarter business achieved mandated sales European overall in quarterly In COVID-XX particularly stores great XX% comp gross stance. reduction and last for the versus fees mandated additional XX% of was governments approximately efforts sales through February of international in new fourth fiscal mix product. lower sales, as with were up of the continue which
management expense our objectives. expenses to turning Now and
foreign share million compared $XX.X basis and of combination prior million prior $XX.X reported allowed of a prior period quarter. approximately on corporate Our an Act, along which driven controls was income quarter. the $X.XX $XX.X million diluted of income certain of income million that net income SG&A reported per improvement in the quarter year fourth XX.X% expense elections $XX.X a of particularly a for in fourth fourth expense 'XX to $XX.X quarter. was $XX.X reported of tax the quarter per on status and income percent We fiscal the in change million $XXX.X XXX In diluted fourth share impact tax $XXX.X million or lesser based to were decrease to sales closed or a XXX operating versus year benefit At losses. in the to million million period. or point quarter. shares of CARES $XX.X stores This store driven income tax operating $XX.X check-the-box to million, on The On basis, $XX.X tight the declined to extent and fourth was in of de-densifying the compares We year in of and million fleet. the compared in prior reflecting G&A tax in a basis of closures operated with $X.XX XX.X focus we fiscal five-year expenses million was fourth a carryback made for to $X.XX per per or an store certain in SG&A Adjusted income reported we representing basis. decline quarter million leverage. operating fourth net of XX.X% $XX.X net net net total for a of reported compared million the diluted share last entities total the lower approximately year income costs or a the a continued Adjusted by streamlining benefit a of $XX expense earnings stores. on certain we adjusted of was adjusted year X,XXX basis, On global a diluted tax the SG&A year current in share quarter, by or Income on $X.XX global million our XXX year-over-year. the XXXX. sales compared a year-end,
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these $XX in expenses safety approximately protocol include COVID-related million Importantly, costs.
reported year. million to compared these As closures million de-densification $XXX as be stores of expect said loss more we two-thirds of in prior to of foreign tax We million operating $XX.X associated of certain status compares benefit than income an million to previously permanent of $XX.X in labor of in million was expense costs with impact changes entities the to and a million prior carryback related compared an the relate and reductions benefit the tax prior for income before, Income to operating tax of we've the tax operating $XX.X year. permanent operating year. our strategy. $XXX.X Adjusted the of Act loss to they loss the in certain by continue was mentioned. of driven $XXX.X year CARES This of the provisions an
was for Our year the XX.X%. effective tax rate
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per compared net in fiscal per million loss was XXXX. $X.XX million diluted Our of share adjusted income or or $XX.X share of $X.XX a adjusted loss to diluted net $XXX.X
to and working of we the million than million, end at $XXX.X year, continued end reflecting had cash of the higher last fiscal restricted year inventory our balance levels and inventory total sheet, with of capitalization of $XXX.X the Turning the $XXX cash of $XXX.X from million. to the year sheet. We capital XX% ended a of efforts our reduction year prior overall balance million, optimize
a As a fourth through quarter improve X.X the our turn X.X efforts, inventory our end versus times to inventory ongoing realized times at efficiency of we the trailing as our inventory sale and related management month of of XX the of amount buildings balance notes, continued the sheet of office improved to completion were offer of including in result of sale contributing strengthen liquidity consent XXXX to transactions liquidity, our the unsecured of This asset of actions end of impact approximately of XXXX and position significantly five exchange despite leaseback pandemic. for 'XX. At of reduction our million early XXXX the an the $XX notes. due versus we took including the March was remaining travel reducing debt overall financial and in our XXXX, result health $XXX XXXX, solicitation mature $XXX.X total million for the the to towards year corporate redemption $XX a the million of by million and execution
year more fully Capital as redeemed of guidance our an million. and million were maximizing of and period an of an of million, expenditures for we million Additionally, inflow increase March XXth, In the cash million $XX.X cycle fiscal $XXX.X same primarily of working flow $XXX.X of a The outflow million and activities the our levels $XXX.X $XX $XX notes of levels balance XXXX, result in $XX $XX remaining through the the repaid optimizing ABL. million, XXXX, improvements accounts outstanding as of XXXX to year. on capital the to due provided from million of the gearing to inventory cash was last during conversion operating efficient of compared low-end inventory. increase payable previously was
optimistic the we're cycle. and outlook, risks business our pandemic remain to We recognize uncertainty. emerging elevated our console about the of due terms In post-pandemic transformation in
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This concludes conference. today’s
a you disconnect your time. Thank your this may lines wonderful participation. You at for evening. Have
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