GameStop issued a warning that its Q3 sales, due to be reported November 22, were below expectations, with same store sales declining 6-7% in the quarter. The decline was blamed on lower-than-expected sales of new video game releases. "While the Technology Brands and Collectibles segments continue to grow rapidly, they will not offset the decline in gaming this quarter," CEO Paul Raines said in a statement.
GameStop has been moving rapidly to expand its sales in collectibles, including CCGs, by acquiring ThinkGeek, changing the mix in its 7500 stores worldwide, testing a store-within-a-store concept, opening dedicated collectibles stores, and more (see "GameStop Wants To Be Global Leader in Collectibles Retailing"). It has rapidly grown to be an important player in the CCG space, and is growing in merch sales quarter by quarter.
GameStop also lowered its full year guidance, with same store sales now expected to decline 6.5-9.5%
Shares declined over 11% Wednesday on the news.
Chain Warns of Sales Declines
Posted by Milton Griepp on November 2, 2016 @ 4:04 pm CT