GameStop Corp. (NYSE:GME) Q2 2019 Earnings Conference Call Transcript
Sep 10, 2019 • 05:00 pm ET
Thank you. [Operator Instructions] We will now take our first question from Steph Wissink of Jefferies. Please go ahead.
Good afternoon [Phonetic], everyone. I mean, I want to focus on three areas if we can. George, my first question is for you is on initiative number four, transforming your vendor partnerships. I'm wondering if you can talk a little bit about some of the incremental or additional high-margin revenue streams that you see in that specific agenda item? Can you just give us a sneak peek at some of those things that you might be looking at?
And then my second question is you spotlighted collectibles as one of the areas of outperformance. I think you mentioned 14 quarters or 15 quarters of double-digit comp growth. Can you talk a little bit more about how that range of products has evolved, how the ThinkGeek business has evolved? How you're thinking about collectibles as a core driver under some of the new initiatives that you described at the beginning of the call? Thank you.
Yeah. Thanks, Steph. I think starting off with your question on the transforming vendor partner relationships as that covers a very broad spectrum, I think first and foremost, we never really have truly negotiated as a global company, and that's certainly part of our focus going forward. We're looking at the full spectrum of opportunities with our partners. I think that includes new revenue streams, and I think that includes things like digital exclusives, physical exclusives just as we've done in the past.
When we talk about high-margin categories, we are referring to other categories as well like private label. We find on a global basis that the US private label penetration is lower than our other operating businesses. And that there's an opportunity there to go ahead and drive more of that, and we certainly look at categories that we think that we've been missing for a while like PC gaming.
Kind of transitioning into collectibles, clearly, that's a high-margin category for us as well. It's been successful. I think there's been a level of trial and error along the way with collectibles because it was new to us. I'd say that our view as to where success lies in collectibles has become much more focused and we're able to kind of hone in, in those areas. So it's one that we intend to grow. It's one that we see continued double-digit growth ahead. It's one that we see as a means of attracting new customers in the gaming, which is very, very important for our vendor partners is bringing new folks into gaming for the first time as very often collectibles customers are not necessarily core gamers.
Thank you. Good luck tomorrow with your trading day for the Bahamas by the way. Thanks.
Our next question comes from Joe Feldman of Telsey Advisory Group. Please go ahead.
Yeah. Hi, guys. I wanted to understand that -- you made a comment about digital