GameStop share prices fall after "disappointing" holiday figures
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.