The Grapevine, TX-based video game retailer reported adjusted fourth quarter earnings of $1.45 per share on revenue of $3.1 million. Analysts were expecting the company to report earnings of $1.60 per share on revenue of $3.28 billion.
"As we think about 2019 and beyond, we recognize the challenges facing our pre-owned video game business and are prepared to address them as we continue to evolve our business model going forward," Chief Operating Officer Rob Lloyd said in a press release. "Importantly, we will continue to leverage our powerful brand to drive growth and, with a new cost savings and profit improvement initiative in place, we will focus our efforts on driving profitability."
For the year, three of the company's six business segments experienced revenue declines. New hardware sales fell 1.3% while new software sales declined 5.1%. The company's pre-owned games sales dropped 13.2%.
For the coming fiscal year, the company expects total sales, as well as same store sales, to fall between 5% and 10%.
"GameStop is a leader in the video game industry, and we remain committed to capitalizing on our leadership position to discover new and unique ways to meet our loyal customers' entertainment needs and attract new customers," Lloyd said.
How Much Money Will I Need to Retire?
Want to learn about retirement planning from some of the nation's top experts? Join TheStreet's Robert "Mr. Retirement" Powell live in New York on April 6 for our Retirement Strategies Symposium. For a limited time, tickets are available for $99 for this full-day event. Check out the agenda, learn about the speakers and sign up here.