GameStop Sales Crash 14% In Q2 2019

GameStop has published their sales and financial results for the second quarter of 2019.

Global sales in the second quarter decreased 14.3%. Sales for all product categories, except collectibles, decreased across the board. Sales performed under expectations as GameStop clocked in USD1.28 billion in sales, which is below their USD1.33 billion target.

The company had also seen larger losses than they expected – Q2 2019 saw a net loss of USD320 million, as compared to the estimated USD220 million.

More details below:

• New hardware sales decreased 41.1%, reflective of recent announcements for next generation console launches in 2020.
• New software sales decreased 5.3%, with growth in Nintendo Switch software titles more than offset by weaker title launches across other consoles in the quarter compared to last year.
• Accessories sales decreased 9.5%.
• Pre-owned sales declined 17.5% with declines in hardware and software.
• Digital receipts decreased 11.2% to $227.2 million due to weaker title launches in the quarter compared to last year.
• Collectibles sales increased 21.2%, with continued strong double-digit growth in both domestic and international stores.

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