GameStop Corp. (NYSE:GME) reported downbeat results for its second quarter and issued weak 2019 earnings forecast.
A news release issued Tuesday by the Grapevine, Texas-based company said its second quarter GAAP net loss was $415.3 million, or $4.15 per diluted share, compared to net loss of $24.9 million, or $0.24 per diluted share, in the prior-year quarter, which included the Spring Mobile business.
Second-quarter fiscal 2019 results include asset impairment charges and other items of $400.9 million ($381.6 million net of taxes), or $3.82 per diluted share, primarily related to impairment of goodwill. Second quarter fiscal 2018 results included a non-operating tax charge of $29.6 million, or $0.29 per diluted share.
Excluding the $400.9 million of impairment charges and other items, GameStop's adjusted net loss from continuing operations for the second quarter was $32.0 million or $0.32 per diluted share, compared to net loss from continuing operations of $10 million, or $0.10 per diluted share, in the prior-year quarter.
Said CEO Jim Bell, "While we experienced sales declines across a number of our categories during the quarter, these trends are consistent with what we have historically observed towards the end of a hardware cycle.
"We will continue to manage the underlying businesses to produce meaningful cash returns, while maintaining a strong balance sheet and investing responsibly in our strategic initiatives."
In July, GameStop completed a modified Dutch auction tender offer to purchase 12,000,000 shares of its common stock at $5.20 per share for an aggregate cost of $62.4 million, excluding fees and expenses.
Shares faded $1.01, or 19.8%, to $4.08
