GameStop forecasts current-quarter same-store sales below estimates

Markets Reuters

Copyright Reuters 2016

(Copyright Reuters 2016)

GameStop Corp , the world's largest retailer of video games, forecast a bigger-than-expected decline in same-store sales for the crucial holiday quarter, as more players switch to downloading games on their consoles.

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The company said on Tuesday it expected sales at established stores to fall between 7 percent and 12 percent in the fourth quarter.

Analysts on average had expected a 7.1 percent fall, according to research firm Consensus Metrix.

GameStop's net income fell to $50.8 million, or 49 cents per share, in the third quarter ended Oct. 29 from $55.9 million, or 53 cents per share, a year earlier.

The company's net sales fell to $1.96 billion from $2.02 billion, the third straight decline.

The numbers were in line with the company's preliminary estimates released earlier this month.

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GameStop had then cut its full-year profit forecast, citing lower-than-anticipated sales of games released in October.

(Reporting by Anya George Tharakan in Bengaluru; Editing by Sriraj Kalluvila)