GameStop Posts $624.3 Million Loss15 Nov, 2012 By: Chris Tribbey
Retailer GameStop reported a third-quarter loss of $624.3 million, pointing to a weak slate of new-release titles and poor same-store sales for the results.
GameStop posted a profit of $53.9 million during the same quarter in 2011.
“We are now focused on delivering a successful holiday quarter driven by great titles, an unrivaled loyalty program, exciting new businesses and the Wii U launch,” said CEO Paul Raines. The Wii U, Nintendo’s next generation gaming console, launches Nov. 18.
Total sales for the quarter were $1.77 billion, down nearly 9% from $1.95 billion during the same quarter in 2011. Same-store sales were down 8.3%, with declines in new software, pre-owned software and new hardware sales.
Digital sales grew 31.8% to $127 million.
“During the quarter, we reached an important milestone of repurchasing $1 billion of our stock since 2009,” said GameStop CFO Rob Lloyd. “Our on-going buyback program and quarterly dividends highlight our commitment to improving total shareholder return through disciplined capital allocation.”
For the fourth quarter GameStop sees comparable store sales dropping as much as 7% to improving as much as 1%.