By Yasin Ebrahim
Investing.com – Video game retailer GameStop reported wider-than-expected losses in the second quarter as sales were hurt by shuttered stores during the lockdown.
GameStop (NYSE:GME) fell more than 4% in after-market trading.
The company reported a Q2 non-GAAP loss of $1.40, compared with consensus estimates for a loss of $1.14 a share. While revenue fell 27%, to $942 million from a year earlier, below estimates of $1.01 billion.
Comparable store sales declined 12.7%, which was less than the feared consensus estimate for a 21.5% drop.
Gross margin declined 420 basis points from the prior-year period, driven by the increased mix of hardware sales, which carry a lower gross margin, the company said.
“As a result, at the end of August 2020, the Company had substantially all of its worldwide locations open to limited customer access or curbside delivery,” it added.
GameStop Reports Wider Loss, Misses Revenue in Q2; Shares Fall
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