GameStop Cuts FY Comparable Store Sales Guidance

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GameStop Friday lowered its comparable store sales guidance for the full year and said total comparable global sales for the nine-week holiday period ended Dec. 31 fell 18.7%.

Comparable store sales for Q4 are expected to fall between 16% and 18% while full year comparable sales are seen declining 10% to 12% for the fiscal year. Upon releasing Q3 figures, the company said FY comparable sales would fall 6.5% to 9.5%.

Total global holiday sales fell 16.4% to $2.5 billion.

“During the holiday period, sales in the video game segment were impacted by industry weakness, promotional pricing pressure and lower in-store traffic, amidst a difficult holiday season for many retailers,” CEO Paul Rainse said. .”We are disappointed with our overall results, but looking broadly, we did see continued growth in our non-physical gaming businesses and we expect this category to approach 40% of our earnings in fiscal 2016.”

GameStop meanwhile reiterated its previously announced Q4 EPS guidance of $2.23 to $2.38 for Q4 and $3.65 to $3.80 for 2016.

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