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Tuesday, December 10, 2019

=GameStop (GME) reported earnings on Tue 10 Dec 19 (a/h)

GameStop misses by $0.66, misses on revs, comps -23.2%; lowers FY20 EPS, comps guidance

  • Reports Q3 (Oct) loss of $0.49 per share, excluding non-recurring items, $0.66 worse than the S&P Capital IQ Consensus of $0.17; revenues fell 25.7% year/year to $1.44 bln vs the $1.62 bln S&P Capital IQ Consensus. The sales decline was driven by a consolidated comparable store sales decrease of 23.2%.
  • Co lowers guidance for FY20, sees EPS of $0.10-0.20 (Prior $1.15-1.30), excluding non-recurring items, vs. $1.26 S&P Capital IQ Consensus; sees a comps decline in the high-teens (Previously saw down low-teens)
  • "Our third quarter results continue to reflect the prevailing industry trends, most notably the unprecedented decline in new hardware sales seen across the market as the current generation of gaming consoles reach the end of their lifecycle and consumers delay their spending in anticipation of new hardware releases. With console makers set to introduce new and innovative gaming consoles late next year, we anticipate this trend to continue until the fourth quarter of 2020. Despite the current top-line trends, we are pleased with the continued strong progress that we are making against our strategic initiatives as we transform GameStop for the future. We remain on track to achieve our $200 million annualized operating profit improvement goal, by 2021 and we believe our strategic initiatives will enable to us to achieve our long-term growth and profit objectives as we fully leverage our unique leadership position and brand in the video game space."
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