by Christopher Freeburn | March 27, 2014 10:06 am
On Thursday, video-game retailer GameStop posted weaker-than-expected quarterly results. GME stock tumbled more than 7% on the news.
GME stock dropped after GameStop reported a net profit of $220.5 million during its fiscal fourth quarter. That was down from $261.1 million in the prior-year period. EPS came in at $1.89, disappointing analysts who had forecast earnings of $1.92 per share, Reuters noted.
Quarterly revenue of $3.68 billion — up from $3.56 billion in the year-ago period — also missed the $3.79 billion that Wall Street had anticipated.
The company is facing pressure both from rising online video game sales and from discount retail chains like Walmart (WMT), which sells video games and recently announced plans to allow used game trade-ins.
GameStop also said that it planned to shut down about 2% of its existing stores in 2014.
GME stock closed at $38.90 per share on Wednesday. Over the past 12 months, GME stock has climbed more than 45%.
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