GRAPEVINE, Texas, Jan. 13, 2020 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE: GME), today reported sales results for the nine-week holiday period ended January 4, 2020.
Total global sales from continuing operations for the holiday period were $1.83 billion, a 27.5% decrease compared to the 2018 nine-week holiday period ended January 5, 2019. Total comparable store sales for the nine-week period decreased 24.7%, following a 1.5% increase in comparable store sales for the similar period in fiscal 2018. Sales results during the holiday period are indicative of overall industry trends impacting the video game industry and driven by an accelerated decline in new hardware and software sales, particularly in the month of December.
George Sherman, GameStop’s chief executive officer said, “We expected a challenging sales environment for the holiday season as our customers continue to delay purchases ahead of anticipated console launches in late 2020. However, the accelerated decline in new hardware and software sales coming out of black Friday and throughout the month of December was well below our expectations, reflective of overall industry trends. On a positive note, we continued to see growth in the Nintendo Switch platform, which supports our view that our sales will strengthen as new consoles and innovative technology are introduced.”
Mr. Sherman continued, “Given the deceleration in sales trends, particularly in December, we are adjusting our sales outlook for fiscal 2019 and now expect fiscal 2019 earnings to be below guidance. While we expect the challenges that we faced in the fourth quarter to continue into fiscal 2020, we believe we have the right long-term action plans in place to optimize profitability and increase new revenue streams in advance of new console introductions for holiday 2020. We look forward to delivering progress against our strategy as we move through the year.”
Comparable store sales are now expected to decline in the range of 19% to 21% for fiscal 2019. The Company, while not updating earnings per share guidance at this time, now expects an adjusted net loss for the fiscal year, with adjusted earnings per diluted share impacted by the further deceleration in sales in December. Despite the sales results, the Company continues to manage inventory effectively and anticipates ending fiscal 2019 with inventory down approximately 26% as compared to the fiscal year end 2018. The Company now expects capital expenditures for FY2019 to be in the range of $75 million to $80 million, and forecasts total cash and liquidity, including availability under the revolving line of credit, at the end of the fiscal year to be approximately $900 million.
The Company anticipates reporting fourth quarter and full fiscal year 2019 results in late March.
Webcast of Fireside Chat at 22nd Annual ICR Conference
The Company will webcast a discussion of the business by George Sherman, chief executive officer, and Jim Bell, chief financial officer, at the 22nd Annual ICR Conference. The event will take place on Tuesday, January 14, 2020 at 10:30am ET. The fireside chat discussion will be available live and for replay on GameStop’s investor relations web page at http://investor.GameStop.com/.