BENGALURU: GameStop Corp, the world’s largest retailer of video games and related products, reported lower-than-expected quarterly revenue, hurt by lower sales of new gaming software and hardware.
Shares of Gamestop, which also reported a third-quarter profit below analysts’ average estimate, fell 17.9% to US$32.25 (RM138.20) in premarket trading on Monday.
New video game software sales fell 9.3% to US$674.5mil (RM2.89bil), while those of new gaming consoles slipped more than 20% to US$358.1mil (RM1.53bil) in the quarter ended Oct 31.
“Our third-quarter results were at the low end of our guidance range due to lower-than-expected new software and hardware sales and delays in technology brands store openings,” chief executive Paul Raines said in a statement.
Net income fell to US$55.9mil (RM239.4mil) from US$56.4mil (RM241.6mil) a year earlier.
On a per share basis, profit rose to 53 cents from 50 cents, due to fewer shares outstanding.
Excluding items, the company earned 54 cents per share.
The Grapevine, Texas-based company said total revenue fell 3.6% to US$2.02bil (RM8.65bil).
Analysts on average had expected a profit of 58 cents per share on revenue of US$2.14bil (RM9.17bil), according to Thomson Reuters I/B/E/S.
Up to Friday’s close of US$39.26, the company’s shares had gained 16% this year. - Reuters
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