GameStop Profit, Sales Fall on Lack of New Games
Aug 16th 2012 9:25AM
GameStop Corp.'s (NYSE: GME) second-quarter earnings and sales fell as the lack of new game releases led to software and hardware declines.
GameStop's second-quarter earnings were $21 million, or $0.16 a share, down from $30.9 million, or $0.22 a share in the year-ago period. Wall St. was expecting $0.15 per share earnings, according to data compiled by Reuters.
Revenue of $1.55 billion for the quarter was down from $1.74 billion a year ago. Analysts were anticipated sales of $1.61 billion. Sales of preowned games declined 11.2%.
"We continue to see solid sales growth as well as strong margins in our new retail offerings and digital channels," CEO Paul Raines said in a statement. "We are focused on staying ahead of the curve as the competitive landscape evolves and we manage through the trough of the console cycle."
Shares of GameStop are fractionally to $17.15 in premarket trading. The 52-week range is $15.32 to $26.66.
Filed under: 24/7 Wall St. Wire, Earnings, Video Games Tagged: GME