GameStop Corp. (NASDAQ: GME) reported second quarter earnings, showing a glimpse of the troubled industry.
Although sales have surpassed estimates yet again, the company missed expectations for adjusted earnings per share, reporting a figure or $0.15 when $0.16 was expected. This represents a 44.4% decrease in earnings from the previous year. Industry headwinds were to blame as decreased store traffic and a more challenging retail landscape cut into profits.
Comparable store sales slid domestically by 1.4% but internationally, last quarter saw a growth of 9.8%. The company also saw a software sale decline of 3.4% while hardware sales, on the other hand, grew 14.8%. The company also closed down 28 locations globally, but is ramping up its collectibles department, opening 5 new stores and raising the total to 99.
The quarter did not do much to abate shareholders and investors, but the company as reiterated its guidance for 2017 with an EPS in the range of $3.10 to $3.40. Management expects to see continued growth in the Technology Brands and Collectibles, with earnings earmarked at around $150 million for fiscal 2017 and $200 million in fiscal 2019.
GameStop opened at 10% lower and has slid further down to 13% around midday. The stock is trading almost 12 times its average daily volume is 1.96 million shares.