GameStop Corp. tumbled 5.5 percent after investors were disappointed with the video game store operator’s holiday season sales, particularly a decline in new software sales, which declined 9.7 percent. The stock lost $1.62 to $27.76 in early morning trading on the NYSE.
The Grapevine-based video game retailer reported it was lowering earnings and same-store sales outlook for both the fourth quarter and full fiscal year 2015.
Sales of new hardware increased 4.5 percent, as consumers were motivated by manufacturer promotions for Sony’s PlayStation 4 and Microsoft’s Xbox One, according to the company.
PlayStation 4 and Xbox One combined new software sales increased 38 percent compared with the prior year holiday period, in which they grew 94.4 percent. Despite this growth, new software sales declined 9.7 percent, primarily due to fewer Nintendo titles available compared to last year and declines in prior generation software sales.
The company said it expects earnings per share of $2.19 to $2.25 in the fourth quarter ending Jan. 31, versus its previous projection of $2.12 to $2.32 per share. Analysts anticipated $2.26, the average of predictions compiled by Bloomberg.
GameStop also projected a narrower fiscal year 2015 earnings outlook to a range of $3.69 to $3.75 from a previous range of $3.66 to $3.86. – this story includes material from the Associated Press