No fun at Gamestop after big sales drop
Shares of the 5,000+ chain tumble in after market trading
Videogame and collectibles retailer GameStop Corp. reported a larger-than-expected 27% sales drop and a wider adjusted loss for the second quarter amid the pandemic.
Shares in aftermarket trading dropped by as much as 6%.
DESPITE CORONAVIRUS-LED VIDEO GAME SALES SPIKE, GAMESTOP DECREASE EXPECTED
The net loss narrowed to $111.3 million, or $1.71 a share, from $415.3 million, or $4.15 a share, a year earlier. On an adjusted basis, the loss was $1.40 a share, compared with analysts' projected $1.13 a share, according to FactSet.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 29.67 | +1.77 | +6.34% |
Meanwhile, net sales fell to $942 million from $1.29 billion a year earlier. Analysts expected $1.02 billion. Revenue from software and collectibles, typically "market-basket builders in-store," fell to $386.5 million and $113.9 million, respectively.
The company suspended financial projections, citing uncertainty over the business impact from the pandemic. As of the end of August, the Texas-based company said substantially all of its stores were open to limited customer access or curbside delivery.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"While the ongoing pandemic continues to create a somewhat uncertain environment in the short term, we are very pleased by the consumer response at GameStop to the few recent video game product introductions and we believe we are ready, with expanded service and payment options, to handle the expected surge in demand and participate in a very significant way in the console launches later this year," Chief Executive George Sherman said in a statement.