GameStop’s Q2 Income Falls As Sales Slow
GRAPEVINE (AP) – The world’s biggest video game retailer has reported a 32 percent decline in its second-quarter net income.
Grapevine-based Gamestop on Thursday said sales had slowed because not enough new games came out to draw in customers.
The company is also testing to see if it needs to write down the value of its good will because the value it’s carrying on its books exceeds the company’s market capitalization.
For the period that ended July 28, GameStop earned $21 million, or 16 cents per share. That’s down from $30.9 million, or 22 cents per share, a year earlier.
But the performance managed to meet the expectations of analysts polled by FactSet.
Revenue fell 11 percent to $1.55 billion from $1.74 billion.
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