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GameStop Holiday Sales Tank 28%, Shares Fall

GameStop Corp. (GME) Monday said sales for the nine-week holiday period dropped 28% sending shares down near 10% in extended trading session.

Total global sales from continuing operations for the holiday period were $1.83 billion, a 27.5% decrease compared to the 2018 nine-week holiday period ended January 5, 2019.

Total comparable store sales for the nine-week period decreased 24.7%, following a 1.5% increase in comparable store sales for the similar period in fiscal 2018.

CEO George Sherman said, "We expected a challenging sales environment for the holiday season as our customers continue to delay purchases ahead of anticipated console launches in late 2020. However, the accelerated decline in new hardware and software sales coming out of black Friday and throughout the month of December was well below our expectations, reflective of overall industry trends."

Sherman continued, "Given the deceleration in sales trends, particularly in December, we are adjusting our sales outlook for fiscal 2019 and now expect fiscal 2019 earnings to be below guidance."

GameStop expects comparable store sales to decline in the range of 19% to 21% for fiscal 2019.

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