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GameStop Misses Quarterly Estimates Amid Store Closures and Increasing Digital Competition

Comparable store sales fell 24.6% during the quarter

Image source: GameStop

(Reuters) -Videogame retailer GameStop Corp missed Wall Street estimates for quarterly revenue on Tuesday as pandemic-led store closures and intense competition from digital-game sellers hit sales.

The company’s shares were down 4.2% at $16.13 in extended trading, as it said comparable store sales fell 24.6% during the quarter.

A rise in the popularity of videogame streaming and surging digital downloads of console games have hit GameStop’s sales growth, with coronavirus-driven curbs heaping more pressure on the videogame retailer.

Still, GameStop said it “expects to realize positive comparable store sales results and profitability in the fourth quarter,” betting on holiday season sales as well as Microsoft and Sony’s new console launches.

The company did not provide a current-quarter forecast.

Net loss narrowed to $18.8 million, or 29 cents per share, in the third quarter ended Oct. 31, from $83.4 million, or $1.02 per share, a year earlier.

Excluding items, it posted a loss of 53 cents per share, while analysts had expected a loss of 85 cents per share, according to IBES data from Refinitiv.

Revenue fell 30% to $1 billion, missing analysts’ estimates of $1.09 billion.

Reporting by Eva Mathews in Bengaluru; Editing by Devika Syamnath


Source: Reuters

AT&T, T-Mobile and Verizon should be turning the volume up. Their current quiet murmur is just not enough.