GameStop cuts outlook after weak holiday sales, shares drop

The company now expects full-year earnings to be below its prior forecast

Shares of GameStop dropped 11 percent in extended trading on Monday after the video game retailer cut its 2019 profit and sales forecast due to a weak holiday season.

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TickerSecurityLastChangeChange %
GMEGAMESTOP CORP4.75+0.13+2.81%

The company now expects full-year earnings to be below its prior forecast of between 10 cents and 20 cents per share and comparable store sales to decline between 19 percent and 21 percent compared with a prior estimate of a drop in the high teens.

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Total global sales from continuing operations for the holiday period were 27.5 percent lower compared to the 2018

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“We expected a challenging sales environment for the holiday season as our customers continue to delay purchases ahead of anticipated console launches in late 2020, said George Sherman, chief executive officer. "However, the accelerated decline in new hardware and software sales coming out of black Friday and throughout the month of December was well below our expectations, reflective of overall industry trends".

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GameStop will report fourth quarter and full fiscal year 2019 results in late March.