Game Stop continues to explore alternatives—including possible sale
GameStop reported mixed results for its second quarter and confirmed it is considering a potential sale of the company.
The videogame retailer beat the Street on revenue, but its earnings missed estimates. It also said it is engaging with third parties “regarding a possible transaction” as part of a review of strategic and financial alternatives that was initiated by the company's board.
“As our teams prepare for a busy and exciting holiday period, our board of directors, with the support of our financial and legal advisors, continues to conduct a comprehensive review of strategic and financial alternatives, including, but not limited to, a potential sale of the company,” said Dan DeMatteo, executive chairman of GameStop’s board of directors.
GameStop reported a net loss of $24.9 million, or 24 cents, for the period ended Aug. 4, compared with net income of $22.2 million, or 22 cents, in the year-ago period. Adjusted earnings per share fell to 5 cents from 15 cents. Analysts tracked by FactSet expected 8 cents a share.
Revenue fell 2.4% to $1.65 billion, but was still ahead of the $1.62 billion analysts were projecting. Digital sales increased 15.3% to $255.9 million, excluding the second quarter 2017 revenues from Kongregate, which was sold in July 2017.
The company reiterated its full-year outlook, which calls for total a total sales decline of 2% to 6%. It also reiterated its previous annual earnings-per-share guidance of between $3.00 and $3.35. Analysts were expecting $3.11 per share.
GameStop operates over 7,100 stores across 14 countries.
The videogame retailer beat the Street on revenue, but its earnings missed estimates. It also said it is engaging with third parties “regarding a possible transaction” as part of a review of strategic and financial alternatives that was initiated by the company's board.
“As our teams prepare for a busy and exciting holiday period, our board of directors, with the support of our financial and legal advisors, continues to conduct a comprehensive review of strategic and financial alternatives, including, but not limited to, a potential sale of the company,” said Dan DeMatteo, executive chairman of GameStop’s board of directors.
GameStop reported a net loss of $24.9 million, or 24 cents, for the period ended Aug. 4, compared with net income of $22.2 million, or 22 cents, in the year-ago period. Adjusted earnings per share fell to 5 cents from 15 cents. Analysts tracked by FactSet expected 8 cents a share.
Revenue fell 2.4% to $1.65 billion, but was still ahead of the $1.62 billion analysts were projecting. Digital sales increased 15.3% to $255.9 million, excluding the second quarter 2017 revenues from Kongregate, which was sold in July 2017.
The company reiterated its full-year outlook, which calls for total a total sales decline of 2% to 6%. It also reiterated its previous annual earnings-per-share guidance of between $3.00 and $3.35. Analysts were expecting $3.11 per share.
GameStop operates over 7,100 stores across 14 countries.