GameStop shares suffered their worst loss since June after the video game retailer cut its profit forecast for the year and reported a surprise quarterly loss. The Grapevine-based chain blamed an “unprecedented decline” in hardware sales as consumers delay purchases and await the release of next-generation consoles. “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,” said GameStop CEO George Sherman.
GameStop lost $83.4 million in the third quarter, far worse than Wall Street anticipated. It now expects same-store sales to fall by up to 19% in the fiscal year ending in January. Its shares fell 15% Wednesday to $5.53, a two-month low.