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

Oracle (ORCL) Q4 earnings, revenue beat Street view

Software giant Oracle Corporation (NYSE: ORCL) reported a 28% growth in fourth-quarter earnings, aided by an increase in revenues. The results also topped Wall Street's prediction. At $11.2 billion, revenues

Southwest Airlines (LUV): Three factors that work in favor of this airline stock

Shares of Southwest Airlines (NYSE: LUV) have gained 56% over the past 12 months and 22% since the beginning of this year. A key player in an industry that was

Lululemon’s growth story could continue in 2021

Lululemon Athletica (NASDAQ: LULU) had a very strong start to fiscal 2021. Apparently, the company is experiencing a stronger momentum in the year 2021, compared to 2019. The company surpassed

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