GameStop Shares Sink As Comparable Sales Slump

By Sue ChangMarketsMarketWatch Pulse

Shares of GameStop Inc. skidded in Thursday's extended session after the videogame retailer posted better-than-expected earnings but reported sharply lower comparable sales. GameStop said its first-quarter earnings fell to $65.8 million, or 63 cents a share, from $73.8 million, or 68 cents a share, a year earlier. On an adjusted basis, the Grapevine, Texas-based company would have earned 66 cents a share. Revenue slid 4.3% to $1.97 billion. Analysts surveyed by FactSet had forecast earnings of 62 cents a share on revenue of $1.97 billion. Same-store sales skidded 6.2%, contrasting with an 8.6% increase a year ago. The company in March had projected same-store sales to shrink 7% to 9%. For the current quarter, the company projected earnings per share in a range of 23 cents to 30 cents and same-store sales to drop 4% to 7%. It also reiterated its full year EPS outlook of $3.90 to $4.05. GameStop shares slumped 8.6% in after hours. [Updated with GameStop's same-store sales forecast from March.]

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