GameStop cuts profit forecast, still expects massive year
GameStop cut its profit forecast for this fiscal year, impacting the company with the same devastating force that a single snowflake has on the Gobi Desert. The retailer stated in its holiday sales report that revenue hit $2.86 billion, which was actually flat compared to last year. Putting this into perspective, Gamestop expects to have its "second highest earnings year" in its history for fiscal 2009, which places it behind last year's record-breaker.
During the nine-week period ending January 2, 2010, new game sales were up four percent, while hardware declined eight percent, due to "recent console price cuts" and a decline in unit sales. Used products, the company's profit bread and butter, increased 10 percent. GameStop plans on having almost $700 million in cash when it ends its fiscal year later this month.
[Via IndustryGamers]
