GameStop Misses Earning Expectations, Q3 Revenue Falls
Video game retailer GameStop has missed earning expectations for the third quarter of the year as worldwide sales and revenue fell.
Worldwide sales amounted to $2.09 billion, which is a decline of 0.7 percent compared to $2.11 billion in the same period last year. GamesIndustry.biz reports that comparable store sales fell by 2.3 percent. Net earnings for the third quarter amounted to $56.4 million after accounting for charges associated with “sale and shutdown of certain business operations.” During the same period last year, net earnings totaled $68.6 million.
While new hardware sales increased by 147.4 percent, new software sales decreased by 34.4 percent. CEO Paul Raines placed some of the blame for low software sales on the delay of Assassin’s Creed Unity.
Overall, most of our major product categories performed very well, but our third quarter results were impacted by Assassin’s Creed Unity moving out of October. As we look at the holiday quarter, we are focused on relentlessly applying our competitive advantages: convenience, strong CRM, knowledgeable associates and value through our unique forms of currency, which include buy-sell-trade and the new PowerUp Rewards credit card, to deliver a successful quarter.
As a result of this news, GameStop’s stock price also fell.