GameStop's reported revenue beat analysts’ estimates for the fourth straight quarter; Nintendo Switch sales still going strong

Sales in GameStop’s core video game retail business, which makes up about 30 percent of revenue, rose 12.4 percent to $1.04 billion.

GameStop Corp, the world’s largest video game and gaming console retailer, reported revenue that beat analysts’ estimates for the fourth straight quarter as sales of Nintendo Switch consoles remained strong.

A GameStop store is pictured in Pasadena.

A GameStop store is pictured in Pasadena.

The company’s shares were up nearly 2 percent after the bell on Wednesday. GameStop also reported a 12.2 percent jump in same-store sales, above analysts’ average estimate of a 9.32 percent rise, according to Thomson Reuters.

Sales in the company’s core video game retail business, which makes up about 30 percent of revenue, rose 12.4 percent to $1.04 billion, while sales in its hardware business jumped nearly 45 percent to $844 million.

However, GameStop reported a net loss of $105.9 million, or $1.04 per share, in the fourth quarter ended Feb. 3, compared with a profit of $208.7 million, or $2.04 per share, a year earlier. The quarter included asset impairment and other charges of $406.5 million, the company said.

Grapevine, Texas-based GameStop had warned it would take a charge in the range of $350 million to $400 million in the fourth quarter, mainly related to its technology brands business. Excluding items, GameStop earned $2.02 per share, beating analysts average estimate of $1.97 per share. Sales rose 15 percent to $3.50 billion, also above estimate of $3.27 billion.




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