GameStop says same-store sales to fall; shares drop

Reuters News
Posted: Jan 08, 2013 9:01 AM

(Reuters) - GameStop Corp, the world's largest retailer of videogame products, said it would report a decline in same-store sales for the fourth quarter after a drop in store traffic during the holiday season.

The company said same-store sales for the current quarter would fall by between 4 percent and 7 percent. Its previous sales forecast ranged from an increase of 1 percent to a fall of 7 percent.

Shares of the company fell 7 percent to $22.92 in early trading on the New York Stock Exchange.

GameStop said new hardware sales, including sales of Nintendo Wii, fell 2.7 percent in the holiday period. As a result, the company expects profit for the current quarter to be at the low end of its forecast range of $2.07 to $2.27 per share.

The company said in November it expected the launch of Nintendo Co Ltd's Wii U and high quality games like Microsoft Corp's "Halo 4" and Activision Blizzard's "Call of Duty: Black Ops II" to boost hardware and software sales in the holiday season.

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"The pre-owned category (of video games) declined 15.6 percent as limited inventory due to fewer new titles released throughout 2012 and less promotional activity negatively impacted sales compared to last year," the company said.

(Reporting by Sayantani Ghosh and Sruthi Ramakrishnan in Bangalore; Editing by Maju Samuel)