GameStop shares tank after earnings miss, cuts sales forecast

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Shares of GameStop tanked after the company reported second quarter earnings and sales that missed analysts' expectations.

GameStop reported an adjusted loss from continuing operations of 32 cents per share compared with 21 cent loss expected by analysts.It also slashed its same-store sales forecast to a decline in the low teens compared to previous expectations of a 5% to 10% decrease.GameStop

The company has been struggling to grow sales as consumers increasingly turn to purchasing games and gaming consoles online, through e-commerce sites such as. Trends such as gaming on smartphones or on a computer have also grown in popularity, which are stealing sales from GameStop's brick-and-mortar shops. It also has been a while since consumers have gotten excited about a new gaming system.

Here's what the company reported compared with what Wall Street expected, based on a survey of analysts by Refinitiv:Revenue: $1.29 billion vs. $1.34 billion expected It also said it plans to spend less on capital expenditures, lowering its forecast to a range of $90 million to $95 million compared with a previous expectation of $100 million to $110 million.

 

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That's because gamestop is horrible. You can show up with 5 PS4 pros,6 Xbox ones, a McLaren, 2 Bugattis and 600 games and you will either get $6.27 or $15 bucks store credit.

BrendanielH

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