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GameStop shares drop on sales dip because of coronavirus
GameStop Corp. shares were down 5% in after-hours trading Tuesday after the retailer of multichannel video game, consumer electronics, and wireless services reported fiscal first-quarter results battered by the coronavirus pandemic. GameStop reported a net loss of $165.7 million, or $2.57 a share, compared with net income of $6.8 million, or 7 cents a share, in the year-ago quarter. After adjusting for stock-based compensation and other factors, GameStop reported a net loss of $103.9 million, or $1.61 a share, compared with $7.5 million, or 7 cents a share a year ago. Revenue declined 17% to $1.02 billion from $1.55 billion a year ago. There was some good news: Global e-commerce sales increased 519% from the year-ago quarter. Analysts surveyed by FactSet had expected a loss of adjusted earnings of 90 cents a share on sales of $1.1 billion. Last week, GameStop said it expected quarterly sales to drop by as much as 33% and that a majority of its stores were closed in March because of the coronavirus pandemic. GameStop also expected same-store sales for the quarter to drop about 30% to 31%, while analysts had forecast a decline of 26.4%. The company said that about 76% of its international stores were closed temporarily in March, and that all of its U.S. locations were closed in March with 65% of those offering curbside pick-up service. GameStop shares are down 18% this year. The broader S&P 500 index is down 0.7% in 2020.
https://finance.yahoo.com/m/d594f3a.../gamestop-shares-drop-on-sales.html?.tsrc=rss
GameStop Corp. shares were down 5% in after-hours trading Tuesday after the retailer of multichannel video game, consumer electronics, and wireless services reported fiscal first-quarter results battered by the coronavirus pandemic. GameStop reported a net loss of $165.7 million, or $2.57 a share, compared with net income of $6.8 million, or 7 cents a share, in the year-ago quarter. After adjusting for stock-based compensation and other factors, GameStop reported a net loss of $103.9 million, or $1.61 a share, compared with $7.5 million, or 7 cents a share a year ago. Revenue declined 17% to $1.02 billion from $1.55 billion a year ago. There was some good news: Global e-commerce sales increased 519% from the year-ago quarter. Analysts surveyed by FactSet had expected a loss of adjusted earnings of 90 cents a share on sales of $1.1 billion. Last week, GameStop said it expected quarterly sales to drop by as much as 33% and that a majority of its stores were closed in March because of the coronavirus pandemic. GameStop also expected same-store sales for the quarter to drop about 30% to 31%, while analysts had forecast a decline of 26.4%. The company said that about 76% of its international stores were closed temporarily in March, and that all of its U.S. locations were closed in March with 65% of those offering curbside pick-up service. GameStop shares are down 18% this year. The broader S&P 500 index is down 0.7% in 2020.
https://finance.yahoo.com/m/d594f3a.../gamestop-shares-drop-on-sales.html?.tsrc=rss
