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Retail

GameStop share prices fall after "disappointing" holiday figures

Fri 07 Jan 2011 9:12am GMT / 4:12am EST / 1:12am PST
BusinessRetail

Stock drops 4.6% despite rise in Christmas revenues from last year

GameStop's stock took a hit of 4.6 per cent yesterday after the company made its 2010 holiday season sales figures public.

The American retailer recorded revenues of $3.02 billion over the nine weeks preceding January 1, less than some market speculators had hoped for although the figures do mark a 5.4 per cent increase on numbers from the same period for 2009.

"We'll have to sort out the market reaction. I'm not sure what that means, but in general we're hearing favourable things," said GameStop's chief executive Paul Raines.

Wedbush Securities' analyst Michael Pachter called the sales spike "slightly disappointing", having expected at least a five per cent boost. Hardware sales managed to exceed those expectations with a 7.4 per cent rise driven largely by Microsoft's Kinect - but software sales only rose by 3.3 per cent over the period, despite the release of the record-breaking Call of Duty: Black Ops.

Raines was optimistic about the near-future market, however, citing the 3DS and motion sensing peripherals as potential big retail drivers over the next few quarters.

2 Comments

David Spender
Lead Programmer

128 52 0.4
You might as well file these articles in the trash bin.

Further down on the News page we read:

"US retailer GameStop has enjoyed record holiday sales for the nine week period ended January 1, primarily driven by new core titles and Microsoft's Kinect.

Total sales were $3.02 billion, up 5.4 per cent compared to the same period in 2009. Online sales were up 100 per cent on last year, and gift card sales jumped 32% during December.

"GameStop exceeded its holiday sales plan based on the strength in Kinect hardware and new software sales driven by core titles," commented Paul Raines, CEO. "

Make up your minds >.> Either that or stop publishing press releases as articles.....

Posted:3 years ago

#1

Thomas Underwood
Game and Level Designer

2 0 0.0
What the articles says is that GameStop made more than last year and beat their own expected profits this year. But market speculators expected GameStop to make a lot more so even though they made more money than last year their stock goes down because they didn't beat what others expected.

Posted:3 years ago

#2

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