GameStop Lowers Guidance Despite Sales Increase
Earnings per share in GameStop stock are now expected to range between $2.35 and $2.40 this year, which is down from the $2.45 to $2.50 range from before. Similar-store earnings growth is now projected at 10-11 percent instead of 12-14 percent. "Weakness in consumer spending" and hardware price cuts were blamed for the drops.
In short, the economic shake-up has had relatively small effects on the niche retailer so far.
"Despite the dramatic decline of the global economy and its severe impact on the entire retail industry, GameStop had a strong quarter," commented CEO Dan DeMatteo as noted by Edge.
GameStop stock dropped to $17.50--a nearly 15% decline--in trading today.
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Angry Max
replyAnyone know if during times of recession/depression/unemployment people tend to lean towards entertainment more? Like watching movies, video games etc... to get away from the misery.
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My work indirectly leads me close through both the alcohol, lotto/gambling as well as semi-fast food industries. If there is a recession going on no one told them or their customers - business is as usual. That is to say very good and ever increasing.
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Maybe people are crawling into a bottle to get away from it all and they're gambling because...hey...you're chances seem better than the stock market (speaking of which I need to buy some cheap ass stocks now that they're going down). And lets face it...who can afford to go to a sit-down restaraunt...fast food is usually pretty fucking cheap.
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when the economy got really bad, I can admit that my store was a goddamn ghost town. i think I went a day back in September where I had not a single customer show up for almost 3 hours.
Then again, I do happen to work on the poorer side of town, and I believe it hit those people most.-
what type of store do you work in?
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