GameStop's Rough Year Continues After Q2 Earnings Miss

Photo by Dwight Burdette/Wikimedia

GameStop Corp. GME troubles continue after reporting a second-quarter earnings miss.

Second-quarter adjusted earnings came in at a loss of 32 cents per share, missing estimates by 11 cents. Sales came in at $1.29 billion, missing estimates by $50 million.

The company sees 2019 adjusted earnings of $1.15-$1.30, against a $1.48 consensus estimate.

"We are committed to acting with a sense of urgency to address the areas of the business that are critical to achieving long-term success and value creation for all our stakeholders," said CEO George Sherman. "We will set GameStop on the correct strategic path and fully leverage our unique position and brand in the video game industry. Our strategic plan is anchored on four tenets which include, optimizing the core business by driving efficiency and effectiveness, creating the social and cultural hub of gaming within each GameStop, building compelling digital capabilities, and transforming our vendor and partner relationships for an evolving video game industry.

"This is a compelling new strategic vision for the company, and we've already started to execute against all four pillars. We also remain committed to returning capital to shareholders and balancing that opportunity against the need to maintain a strong balance sheet to properly run our business and invest in responsible growth".

GameStop shares fell more than 13% in Tuesday's after-hour session. The stock closed at $5.09 per share. The stock is down 60% year to date.

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