GameStop Reports Holiday Season Declines (GME)

GameStop Reports Holiday Season Declines (GME)


Video game retailer, GameStop Corp.(GME) reported declines during the 2012 holiday season on Tuesday.

The company reported total sales of $2.88 billion for the nine week period ended Dec. 29, 2012, a -4.6% decline from last years reported sales for the same period.

Total comparable store sales declined by -4.4% during the period, while comps in the U.S. saw a -3.5% drop. International comps fell by -6.4%.

The company reported that new hardware sales declined by -2.7%, which included the 320,000 Nintendo Wii U units sold globally. GME saw a -5.1% decrease in new video game sales, as well as a -15.6% drop in pre-owned video game sales.

On the upside, GME saw a 40% increase in digital receipts. The company also reported revenue of $76.5 million in their mobile business during the holiday season. Mobile sales have now reached $160 million YTD. GME reported that global e-commerce sales also improved during the period by 20.5%.

GameStop shares were down -$2.55, or -10.3% during premarket trading Tuesday. The stock has been mostly flat in the past year.

The Bottom Line
Shares of GameStop (GME) have a 4.04% dividend yield, based on last night’s closing stock price of $24.75. The stock has technical support in the $21-$22 price area. If the shares can firm up, we see overhead resistance around the $26-$28 price levels.

GameStop Corp.(GME) is not recommended at this time, holding a DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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