Japanese retailer GEO Holdings reported a sharp decline in profits for the first nine months of fiscal 2024, as weakness in new gaming products overshadowed growth in its secondhand business.
Net income fell 30.8% to ¥6.44 billion ($43.2 million) in the April-December period, while revenue decreased 3.4% to ¥316.16 billion. Operating profit dropped 26.4% to ¥9.82 billion.
The Tokyo-based company saw its new products segment revenue plunge 30.1% to ¥73.44 billion, following strong sales of PlayStation 5 consoles and hit game titles in the previous year.
However, the company’s used goods business showed resilience, with sales climbing 12.6% to ¥140.35 billion. While domestic demand for autumn and winter clothing started slowly due to warm weather, December’s cold snap helped recover sales. GEO’s international expansion of secondhand stores also contributed to growth.
The company’s used media segment, including games and mobile devices, grew 12.5% to ¥61.51 billion, supported by steady demand for pre-owned PS5 consoles and classic games, despite the rising popularity of digital downloads.
GEO maintained its full-year forecast of ¥436 billion in sales, up 0.5%, while projecting a 45% decline in net income to ¥6 billion.
