GameStop Shares Fall on Sharp Decline in Holiday Sales

Company says it now expects adjusted net loss for fiscal year.
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Shares of GameStop Corp. (GME) - Get Report fell in after-hours trading Monday after the video-game retailer reported a sharp decline in holiday sales and warned fiscal 2019 earnings will be below guidance.

The company said sales from continuing operations for the nine-week holiday period ending Jan. 4 fell 27.5% to $1.83 billion. Comparable store sales for the period decreased 24.7%.

“The accelerated decline in new hardware and software sales coming out of black Friday and throughout the month of December was well below our expectations,” George Sherman, GameStop’s chief executive officer, said in a statement. He said the company had anticipated some decline “because customers continue to delay purchases ahead of anticipated console launches in late 2020.”

Shares fell 48 cents, or 9%, to $4.95 in after-hours trading.