GameStop Inc. (NYSE: GME) on Thursday announced second quarter earnings that missed analysts’ estimates, however the Company also posted better-than-expected revenue.
GameStop said total sales decreased 2.4% to USD 1.65 Billion in the quarter ended August 4th, 2018. Comparable store sales decrease 0.5% during the quarter, 6.4% decline in international comparable sales offset the 2.5% increase in the U.S.
The Company said new hardware sales increased 20.1%, boosted by the launch of the Xbox One X and continued strong sales of the Nintendo Switch and PS4. While new software sales decreased 18.5% in the second quarter as the Company blamed the lack of significant title launches during the quarter.
GameStop reported a net loss of USD 24.9 Million, or 24 cents per share in the second quarter, compared to a net income of USD 22.2 Million, or 22 cents per share, a year earlier.
Excluding certain items, the Company earned 5 cents per share in the second quarter.
Rob Lloyd, Chief Operating Officer and Chief Financial Officer, said, “Our second quarter results were in line with our expectations and highlighted by solid growth in new hardware, accessories and collectibles. As we enter the back half of the year, we are focused on preparing our organization, particularly our stores and associates, to deliver the best customer experience in the video game industry to support an exciting slate of titles launching this fall, starting tomorrow and through the holiday season. The anticipation around the upcoming video games across several franchises is extraordinary and we remain well positioned to leverage our industry-leading position to drive growth in the second half.”