Gamestop Corp. (NYSE:GME) reported upbeat earnings for its first quarter, while sales missed views. The company sees 2019 comparable sales down 5%-10%. Gamestop’s board also eliminated its quarterly dividend.
The company, based in Grapevine, Texas, reported total global sales decreased 13.3% (11.5% in constant currency) to $1.5 billion, resulting in a consolidated comparable store sales decrease of 10.3% (10.2% in the U.S. and 10.4% internationally).
GameStop’s first quarter GAAP net income was $6.8 million, or $0.07 per diluted share, compared to net income of $28.2 million, or $0.28 per diluted share, in the prior-year quarter, which included the Spring Mobile business.
GameStop's net income from continuing operations for the first quarter was $7.5 million or $0.07 per diluted share, compared to net income from continuing operations of $20.4 million, or $0.20 per diluted share, in the prior-year quarter.
First-quarter fiscal 2018 net income included severance and other charges of $11.2 million ($9.7 million net of taxes). First-quarter fiscal 2018 adjusted net income from continuing operations was $30.1 million or $0.30 per diluted share.
CEO George Sherman said, "Since joining GameStop in April, I have been undertaking a thorough review of the business and working closely with the team to improve our operational and financial performance, address the challenges that have impacted our results, and execute both deliberately and with urgency. We believe we will transform the business and shape the strategy for the GameStop of the future."
Shares retreated $2.74, or 35%, to $5.09
