GameStop misses profit estimate, shares slide

GameStop Corp, the world’s largest video game and gaming console retailer, reported a lower-than-expected quarterly profit on Thursday due to lower sales of video game software at its outlets.

Shares of the company fell about 5 percent to $14.43 after the bell on Thursday.

Net sales from the video game software business fell 18.5 percent to $300.9 million.

GameStop said its comparable store sales fell 0.5 percent in the quarter. Analysts, on average, had expected a 3.5 percent drop in same store sales, according to Thomson Reuters.

Excluding items, GameStop earned 5 cents per share. Analysts had expected a profit of 8 cents per share.

Total sales during the quarter fell 2.4 percent to USD 1.65 billion, ahead of analysts estimate of USD 1.62 billion.

GameStop also said that it continues to engage with third parties regarding a possible deal, that may include a sale of the company.

The company said it has been working with Perella Weinberg Partners LP as financial advisor and Sullivan & Cromwell LLP and Pepper Hamilton LLP as legal advisers to assist in the strategic and financial review process.

The company reported a net loss of USD 24.9 million or 24 cents per share, in the second quarter ended August 4, compared with a profit of USD 22.2 million, or 22 cents per share a year earlier.

(Source)