No fun at GameStop after big sales drop

Videogame and collectible retailer GameStop Corp. Reported more than 27% sales and broad-adjusted losses in the second quarter amid fears of an epidemic.

Shares declined 6% in aftermarket business.

Gamestop Expands, Sales of DESPITE Coronavirus-LED Video Games

The net loss narrowed to $ 111.3 million, or $ 1.71 a share, from $ 415.3 million, or $ 4.15 a share a year earlier. On an adjusted basis, according to FactSet, the loss was $ 1.40 per share, according to analyst estimates of $ 1.13 per share.

The anchor Security The last Change Change %
GME GAMESTOP CORP 7.35 -0.35 -4.55%

Meanwhile, net sales fell to $ 942 million from $ 1.29 billion a year earlier. Analysts were expecting $ 1.02 billion. Revenue from software and collectibles, typically “market-basket builders in-store”, fell to $ 386.5 million and $ 113.9 million, respectively.

The company suspended financial projections citing uncertainty over the business impact from the epidemic. By the end of August, the Texas-based company said that all of its stores were open for limited customer access or curbside delivery.

Click Here To Get Fox Trade On The Go

“While the ongoing epidemic has been creating an uncertain environment for some time, we have been very pleased with the consumer response to GameStop with some recent video game product introductions and are confident that we are ready, with expanded service and payment options, Chief executive George Sherman said in a statement, “handle the expected surge in demand and participate in a very significant way in consoles launched later this year.”

Read more on Fox Business