GameStop Corp. (NYSE:GME) shares tumbled early Wednesday after the company reported downbeat sales for its fourth quarter and issued weak guidance for the fiscal year.
GameStop’s fourth-quarter GAAP net income (loss) was ($187.7) million, or ($1.84) per diluted share, compared to net income (loss) of ($105.9) million, or ($1.04) per diluted share, in the prior-year quarter. Fourth-quarter fiscal 2018 results include asset impairment charges and other items of $334.5 million ($351.6 million net of taxes), or $3.44 per diluted share, primarily related to impairment of goodwill.
Fourth-quarter fiscal 2017 results included asset impairment charges and other items of $406.5 million ($310.9 million net of taxes), or $3.06 per diluted share, primarily related to impairment of intangible assets.
The company, based in Grapevine, Texas, also reported new hardware sales decreased 9.8%, with an increase in Nintendo Switch sales offset by a decline in Xbox One X sales due to its strong launch in the prior year and the impact of the 53rd week in fiscal 2017.
New software sales decreased 7.8%, driven by key titles launching earlier in the year compared to last year and the impact of the 53rd week in fiscal 2017.
Said COO Rob Lloyd, "We are pleased to have delivered fiscal 2018 results within our adjusted guidance range, which included fourth quarter and full year sales growth across video game accessories, collectibles and digital. Excluding the impact of the 53rd week in fiscal 2017, new hardware sales for the year were in line with last year."
Shares in GME lost 87 cents, or 8.6%, soon after the opening bell Wednesday to $9.23
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