GameStop (GME 19.34, -2.44) has slid 11.2% in reaction to mixed results for the second quarter. Today's decline leaves shares at their lowest level of the year, down 23.4% since the end of 2016.
The video game and electronics retailer reported below-consensus earnings of $0.15 per share on a 3.6% year-over-year increase in revenue to $1.69 billion, which was ahead of expectations.
Comparable store sales increased 1.9% as 9.8% growth in international sales outweighed a 1.4% decline in U.S. comparable sales. Sales of new hardware grew 14.8% year-over-year thanks to steady demand for Nintendo Switch. New software sales decreased 3.4% and pre-owned software sales fell 7.5%. Weak Xbox One sales were blamed for the decline.
Digital sales increased 28.1% year-over-year to $122.50 million and non-GAAP digital receipts increased 17.4% to $241.40 million.
Growth in AT&T authorized retail stores helped Technology Brands sales grow 7.0% to $188.30 million.
Looking ahead, the company reaffirmed its guidance for the fiscal year, expecting earnings between $3.10 and $3.40 per share. Comparable store sales for the full year are expected to be on the high end of previous guidance for a decline of up to 5.0%. The company expects strength in Technology Brands revenue associated with the launch of the next-generation iPhone.