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UPDATE 1-GameStop cuts full-year profit forecast, shares slump 21%

UPDATE 1-GameStop cuts full-year profit forecast, shares slump 21%
Image Credit: Pixabay

GameStop Corp reported a plunge in quarterly sales and slashed its full-year profit forecast on Tuesday, as the company struggles with consumers delaying purchases ahead of the launch of new consoles, sending its shares plunging 21%.

The latest versions of Sony Corp's PlayStation and Microsoft Corp's Xbox are due to be unveiled next year, with video game and console retailers also hit by the shift to downloadable or streamable games and away from physical versions. GameStop now sees full-year earnings per share in the range of 10 cents to 20 cents, down from an earlier forecast of $1.15 to $1.30.

Comparable store sales slumped 23.2% in the third quarter, with both hardware and software sales tumbling. Analysts had expected the company to report a 13.8% fall in same-store sales, according to IBES data from Refinitiv.

Excluding items, the company lost 49 cents per share, compared with analysts' average expectation of a profit of 11 cents. Net loss narrowed to $83.4 million, or $1.02 per share, from $488.6 million, or $4.78 per share, from a year earlier.

The year-ago period included an impairment charge of $587.5 million. Net sales fell about 26% to $1.44 billion, missing analysts' average estimate of $1.62 billion.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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