GameStop Corp (GME)
Pretax margin
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 13,100 | -302,100 | -395,400 | -270,600 | -433,300 |
| Revenue | US$ in thousands | 5,272,800 | 5,927,200 | 6,010,700 | 5,089,800 | 6,466,000 |
| Pretax margin | 0.25% | -5.10% | -6.58% | -5.32% | -6.70% |
February 3, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $13,100K ÷ $5,272,800K
= 0.25%
GameStop Corp's pretax margin has shown fluctuating performance in recent years. The pretax margin improved to 0.25% in February 2024 from a negative figure in the prior year. However, despite the improvement, the margin remains relatively low compared to historical levels. In the past five years, GameStop has struggled to maintain positive pretax margins, with the lowest recorded at -6.70% in February 2020. It is essential for the company to continue focusing on cost control and operational efficiency to enhance profitability and sustain positive performance in the future.