GameStop Shares Slump on Revenue Miss

StocksReuters

GameStop, 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.

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Shares of Gamestop, which also reported a third-quarter profit below analysts' average estimate, fell 17.9 percent to $32.25 in premarket trading on Monday.

New video game software sales fell 9.3 percent to $674.5 million, while those of new gaming consoles slipped more than 20 percent to $358.1 million 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 $55.9 million from $56.4 million 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 percent to $2.02 billion.

Analysts on average had expected a profit of 58 cents per share on revenue of $2.14 billion, according to Thomson Reuters I/B/E/S.

Up to Friday's close of $39.26, the company's shares had gained 16 percent this year.

(Reporting by Lehar Maan and Anya George Tharakan in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila)

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