Gamestop's latest financial report shows a loss of $488.6 million
Video game retailer GameStop appears to be continuing its ongoing struggle, according to the company's latest financial report. The third quarter of the year brought in a loss of $488.6 million dollars, which in turn caused company stocks to plummet by 13%. Despite what could be considered a record year for the gaming industry, GameStop saw lower than expected sales for major releases, as well as weak performance for pre-owned purchases. Rob Lloyd, chief operating and financial officer, claimed that though Black Friday/Cyber Monday did well to increase sales performance, he has lowered investor expectations for the following holiday season, stating that software sales will not be very high, compared to hardware, likely resulting in further losses during an important season.
While our Black Friday and Cyber Monday sales were strong, we anticipate that our fourth quarter sales will skew more towards hardware than initially planned which, along with underperformance of certain titles, weakness in pre-owned and recent sales promotions, will result in fourth quarter earnings that are below our previous expectations,
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