GameStop stocks dragged down by earnings
The company’s shares finished 6.5% lower on Tuesday, sinking further in the extended session
Stocks impacted: GameStop Corp. (GME)
The videogame retailer reported lower-than-expected adjusted fourth-quarter earnings and sales. GameStop said it earned $80.5 million, or $1.19 a share, in the quarter, compared with earnings of 32 cents a share in the year-ago quarter. Sales fell to $2.12 billion, compared with $2.19 billion in the fiscal 2019 fourth quarter. Meanwhile, same-store sales rose 6.5% in the quarter, with online sales rising 175% for the quarter and 191% for fiscal 2020. Ahead of earnings, the firm announced its Chief Customer Officer Frank Hamlin will be stepping down and also named former Amazon and Google executive Jenna Owens as its new chief operating officer. In a knee-jerk reaction to earnings, GameStop shares rallied over 8% but reversed gains quickly to finish 6.5% lower. Furthermore, stocks fell 15% in the extended session overnight.
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