- GameStop (NYSE:GME) has settled into strong gains after hours, up 3.4%, after solid beats in its Q3 earnings report driven by its third straight quarter of same-store sales growth.
- Sales of the Nintendo Switch and collectibles were a bright spot along with new game software, mitigating a slowdown in used-game products.
- “As we enter the fourth quarter, we are encouraged by the initial customer response to Microsoft’s Xbox One X, and believe that the holiday season results will be driven by new console hardware and collectibles," says interim CEO Dan DeMatteo.
- EPS rose more than 10% as net earnings increased to $55.1M on an adjusted basis.
- Overall sales were up 1.5% (flat in constant currency) to $1.99B; comparable store sales were up 1.9% (+0.6% in U.S., +4.6% internationally).
- Net sales breakout: New videogame hardware, $309.5M (up 8.8%); New videogame software, $649.9M (up 5.4%); pre-owned and value videogame products, $458.5M (down 2.5%); Videogame accessories, $136.4M (down 12.6%); Digital, $37.2M (down 16.8%); Technology brands, $194.2M (down 10.2%); Collectibles, $138.4M (up 26.5%); Other, $64.5M (up 4.4%).
- It's reiterated full-year guidance for EPS of $3.10-$3.40 (vs. $3.34 expected) and forecasts full-year comparable-store sales to rise in low to mid-single digits.
- Conference call to come at 5 p.m. ET.
- Press release
- Now read: A Fat Dividend And Cloaked Growth At GameStop
Original article