UPDATE 1-GameStop cuts full-year profit forecast, shares slump 21%




(Adds forecast, analysts estimates)

Dec 10 (Reuters) - GameStop Corp reported a plunge in quarterly sales and slashed its full-year profit forecast on Tuesday, as the company struggles with consumers delaying purchases ahead of the launch of new consoles, sending its shares plunging 21%.

Latest versions of Sony Corp's PlayStation and Microsoft Corp's Xbox are due to be unveiled next year, with video game and console retailers also hit by the shift to downloadable or streamable games and away from physical versions.

GameStop now sees full-year earnings per share in the range of 10 cents to 20 cents, down from an earlier forecast of $1.15 to $1.30.

Comparable store sales slumped 23.2% in the third quarter, with both hardware and software sales tumbling.

Analysts had expected the company to report a 13.8% fall in same-store sales, according to IBES data from Refinitiv.

Excluding items, the company lost 49 cents per share, compared with analysts' average expectation of a profit of 11 cents.

Net loss narrowed to $83.4 million, or $1.02 per share, from $488.6 million, or $4.78 per share, from a year earlier.

The year-ago period included an impairment charge of $587.5 million.

Net sales fell about 26% to $1.44 billion, missing analysts' average estimate of $1.62 billion. (Reporting by Amal S in Bengaluru; Editing by Shailesh Kuber)

COMMENTS

More Related News

Facebook, Microsoft gripes with Apple
Facebook, Microsoft gripes with Apple's App Store on EU's antitrust radar
  • US
  • 2020-08-10 16:21:12Z

Facebook and Microsoft's grievances over how their gaming apps appear on Apple's App Store may feed into an EU investigation into the iPhone maker's business as EU antitrust regulators said such concerns are on their radar. The European Commission in June opened four probes into Apple, three of which are into its App Store and its restrictive rules, including requirements that app developers use its own in-app purchasing system. U.S. social media giant Facebook and Microsoft are the latest companies to voice concerns about the rules, which have drawn criticism from app developers who say they create an uneven playing field to compete with the iPhone maker.

Explainer: Microsoft
Explainer: Microsoft's TikTok bid spotlights Windows maker's history with China

Microsoft Corp has emerged as the most likely buyer of the U.S. operations of TikTok, the popular Chinese short-video app that U.S. President Donald Trump is preparing to effectively ban on national security grounds. A deal would be in line with Microsoft's stance toward China where the firm has a sizeable presence - unlike fellow U.S. tech heavyweights such as Facebook Inc and Alphabet Inc's Google which appear to have given up on China's consumer-facing market with its miscellany of government strictures. The country accounts for over $2 billion in annual revenue, Microsoft President Brad Smith said earlier this year.

Twitter
Twitter 'looking' at a possible TikTok tie-up

The messaging platform has approached under-fire TikTok about a possible deal, according to sources.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy