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FIRE 333

Upama Barua

on 25 March 2013

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Images from Shutterstock.com Risk Factors Risk Management Risks Related to Business If economic conditions do not improve, demand for the products they sell may decline. Depends upon the timely delivery of products! Down-loadable Content
New and Used Games
New and used Consoles Income Global sales down 8.9% Gross Profit * How does Gamestop compete against others? - Pre-order incentives
- Methods of delivery
- Buy/sell used games Risks Relating to GameStop's Indebtedness May be adversely affected by the interest rate changes because of their floating rate credit facility -Depends upon third parties to develop products and software.
-Sales and earnings can be negatively impacted
-Pressure from competitors may force them to reduce prices or increase spending The terms of the senior credit facility impose important operating and financial restrictions which limit GameStop's ability to:
-engage in sale and leaseback transactions
-make loans and investments
-sell assets
-declare dividends
-redeem or repurchase capital stocks Assets -Merchandise Inventories
-Property and Equipment
-Good Will THE END
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