By Yasin Ebrahim
Investing.com – Video game retailer GameStop reported wider-than-expected losses in the second quarter as sales were hurt by shuttered stores during the lockdown.
GameStop (NYSE:) fell more than 4% in after-market trading.
The company reported a Q2 non-GAAP loss of $1.40, compared with consensus estimates for a loss of $1.14 a share. While revenue fell 27%, to $942 million from a year earlier, below estimates of $1.01 billion.
Comparable store sales declined 12.7%, which was less than the feared consensus estimate for a 21.5% drop.
Gross margin declined 420 basis points from the prior-year period, driven by the increased mix of hardware sales, which carry a lower gross margin, the company said.
“As a result, at the end of August 2020, the Company had substantially all of its worldwide locations open to limited customer access or curbside delivery,” it added.