Categories AlphaGraphs, Earnings, Leisure & Entertainment

GameStop reports massive losses for Q2

GameStop Corp. (NYSE: GME) missed revenue and earnings expectations for the second quarter of 2019, sending the stock crashing 16% in aftermarket hours on Tuesday.

Total global sales fell 14.3% year-over-year to $1.29 billion, missing estimates of $1.34 billion. On a constant currency basis, sales declined 13.1%. Consolidated comparable store sales were down 11.6%.

GameStop misses revenue and earnings estimates for Q2 2019

On a GAAP basis, net loss widened to $415.3 million, or $4.15 per share, from $24.9 million, or $0.24 per share, in the prior-year quarter, due to a goodwill impairment charge. Adjusted net loss from continuing operations was $32 million or $0.32 per share. Analysts had forecast a loss of $0.20 per share.

New hardware sales fell 41.1%, reflective of recent announcements for next generation console launches in 2020. New software sales dropped 5.3%, as growth in Nintendo Switch software titles was more than offset by weaker title launches across other consoles. 

Also see: GameStop Q2 2019 Earnings Preview

Accessories sales decreased 9.5%. Pre-owned sales declined 17.5% with declines in hardware and software. Digital receipts were down 11.2% to $227.2 million due to weaker title launches. Collectibles sales rose 21.2%, helped by strong double-digit growth in domestic and international stores.

For fiscal year 2019, GameStop expects comparable store sales to decline in the low teens. Adjusted EPS is expected to be $1.15-1.30.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Should investors worry about Micron’s (MU) weak Q4 results and guidance?

The semiconductor industry is a rapidly growing business segment that currently thrives on the digital transformation wave. The demand for memory chips and other semiconductor products increased over the years,

What has Bed Bath & Beyond (BBBY) outlined for this fiscal year?

Shares of Bed Bath & Beyond (NASDAQ: BBBY) were up on Friday, a day after the company delivered disappointing results for the second quarter of 2022. The company reported a

NKE Earnings: Highlights of Nike’s Q1 2023 results

Nike, Inc. (NYSE: NKE) has reported a decrease in net profit for the first quarter of 2023, despite a modest increase in revenues. The company's stock suffered a big loss

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top