GameStop earnings fall as video game sales decline

GameStop Corp. on Thursday reported a 32% drop in net income in the second quarter as video game sales fell -- the result of both a slowing economy and difficult comparisons.

The Grapevine, Tex.-based video game retailer also cut its profit forecast for the rest of the year.

Shares of GameStop fell as much as 5% Thursday in premarket trades.

In the quarter ended Aug. 1, GameStop said net income slid to $38.7 million, or 23 cents a share, from $57.2 million, or 34 cents a share, in last year's second quarter.

Sales fell 3.7% to $1.74 billion for the quarter. Comparable-store sales decreased by 14.1%.

Analysts were expecting earnings of 29 cents a share on revenue of $1.77 billion, according to consensus estimates from Thomson Reuters.

GameStop also forecast a lower profit range for the rest of the year. It sees profit falling to between 27 cents to 33 cents a share in the third quarter and $1.47 to $1.65 a share in the fourth quarter Analysts, on average, had estimated the video game retailer would earn 40 cents a share in the third quarter and $1.64 in the fourth quarter, according to FactSet Research.

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