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GameStop Expecting Q1 Net Loss Between $162 and $172 Million Amid COVID-19 Shutdowns

GameStop has shared its preliminary financial results for the first quarter of fiscal 2020, anticipating a net loss of income ranging between $162 and $172 million.

GameStop largely blamed shutdowns stemming from COVID-19 for the results, stating that approximately 76 percent of its 1,802 international stores were temporarily closed from March onward. Do note that GameStop’s Q1 covers the months of February, March, and April.

The retailer also noted that its operations are being impacted by the ongoing civil unrest in the United States following the death of George Floyd. Approximately 30 store locations are currently closed due to “extensive physical damage” sustained during riots, and a further 90 stores have been closed to protect its staff and customers.

The preliminary report reads:

Total global sales are expected to decrease in the range of 33% to 35% from $1.5 billion in the prior year fiscal quarter. Comparable store sales are expected to decrease in the range of approximately 30% to 31%. Excluding stores that were closed during the first quarter as a result of the COVID-19 pandemic, comparable store sales are expected to decline in the range of approximately 16% to 17%. The Company expects hardware sales to be a larger percentage, and software sales to be a smaller percentage, of total sales in the first quarter of fiscal 2020 compared to the prior year fiscal quarter.

GameStop came under fire when it defied shutdown orders in a number of states to keep its stores open. However, following a crackdown by the authorities, the retailer was forced to close down. As a result, GameStop offered digital services and curbside pickups.

[Source: GameStop]

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