Home
Games
Games News
GameStop Misses Estimates on Lower Than Expected Video Game Sales

GameStop Misses Estimates on Lower-Than-Expected Video Game Sales

By Reuters | Updated: 7 September 2018 15:57 IST

GameStop Corp, the world's largest video game and gaming console retailer, reported a lower-than-expected quarterly profit on Thursday due to lower sales of video game software at its outlets.

Shares of the company fell about 5 percent to $14.43 (roughly Rs. 1,040) after the bell on Thursday.

Net sales from the video game software business fell 18.5 percent to $300.9 million (roughly Rs. 2,160 crores).

GameStop said its comparable store sales fell 0.5 percent in the quarter. Analysts, on average, had expected a 3.5 percent drop in same store sales, according to Thomson Reuters I/B/E/S.

Excluding items, GameStop earned 5 cents (roughly Rs. 3.6) per share. Analysts had expected a profit of 8 cents per share.

Total sales during the quarter fell 2.4 percent to $1.65 billion (roughly Rs. 11,800 crores), ahead of analysts estimate of $1.62 billion.

GameStop also said that it continues to engage with third parties regarding a possible deal, that may include a sale of the company.

The company said it has been working with Perella Weinberg Partners LP as financial advisor and Sullivan & Cromwell LLP and Pepper Hamilton LLP as legal advisers to assist in the strategic and financial review process.

The company reported a net loss of $24.9 million or 24 cents per share, in the second quarter ended August 4, compared with a profit of $22.2 million, or 22 cents per share a year earlier.

© Thomson Reuters 2018

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.