Reuters Mar 29, 2018 15:10:39 IST
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.
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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