Gamestop suffers steep drop in Q2 like-for-like sales
A dearth of new titles knocked sales and profits at digital game retailer GameStop sharply lower.
GameStop Corp.
$27.63
06:39 14/11/24
Net sales fell 7.4% to reach $1.63bn year-on-year during the company's fiscal second quarter, alongside a 10.6% drop in comparable like-for-like sales due to difficult comparators.
In the year-ago quarter sales were boosted by a strong calendar if new title launches such as Batman: Arkman Knight and Elder Scrolls Online.
The release of new information about upcoming new consoles also hit hardware sales, the company said in a statement.
During the reference period, the company also acquired 507 new AT&T Mobility stores through the acquisition of three national AT&T authorised retailers for approximately $441m.
Profits after tax declined from $33.1m to $27.9m or 27 cents per share, versus 31 cents a year ago.
For the next three months, GameStop said it expected comparable-store sales to come in at a range between -2.0% to 1.0%, with diluted EPS between 53 to 58 cents.
EPS was seen in a range from $3.90 to $4.05 for the full-year and same-store sales performance between -4.5% and -1.5%.
As of 1659 BST shares in GameStop were down by 10.48% to $29.11.