GameStop tumbles on First Quarter Earnings release

GameStop Corp. (NYSE: GME) is an omnichannel video game retailer. The Company sells video game hardware, physical and digital video game software, video game accessories, as well as mobile and consumer electronics products and other merchandise through its GameStop, EB Games and Micromania stores. Thursday after market the company announced earnings for the 1st quarter of fiscal year 2017. Shares of the company fell more than more than 5.5% in aftermarket trading session. Total global sales increased 3.8% to $2.05 billion, resulting in consolidated comparable store sales growth of 2.3% (-2.4% in the U.S. and +17.1% internationally). New hardware sales increased 24.6%, led by the highly sought after Nintendo Switch. New software declined 8.2% due to the tough overlap of a few key AAA titles launched last year. Pre-owned sales declined 6.2%, in-line with the company’s expectations. During the quarter, new hardware sales increased 25% due to strong demand for the Nintendo Switch, but new software sales were down 8%.

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