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GameStop Sales Slide as It Continues Looking for Buyers

Video game retailer GameStop released its financial results for the second fiscal quarter of 2018 on Thursday, posting a net loss of $24.9 million.

Total global sales decreased 2.4% to $1.65 billion, although this was consistent with the company’s expectations, it said.

“Our second quarter results were in line with our expectations and highlighted by solid growth in new hardware, accessories and collectibles,” said GameStop chief operating officer and chief financial officer Rob Lloyd. “As we enter the back half of the year, we are focused on preparing our organization, particularly our stores and associates, to deliver the best customer experience in the video game industry to support an exciting slate of titles launching this fall, starting tomorrow and through the holiday season. The anticipation around the upcoming video games across several franchises is extraordinary and we remain well positioned to leverage our industry-leading position to drive growth in the second half.”

GameStop said new hardware sales increased about 20% thanks to the launch of the Xbox One X and continued strong sales of the Nintendo Switch and PlayStation 4. Collectibles sales also rose 15.7% to $141.7 million. The company credits this growth to continued expansion of licensed merchandise offerings, new and improved product offerings, and notable growth in apparel.

New software sales slid 18.5%, however, due to the lack of significant game launches during the fiscal quarter. Pre-owned sales also declined 9.9%.

GameStop also confirmed it’s conducting “a comprehensive review of strategic and financial alternatives, including, but not limited to, a potential sale of the company,” and it’s continuing to engage with third parties regarding a possible transaction. It said back in June it’s in talks with private firms about a potential buyout, but noted on Thursday there’s no assurance the board’s review will result in any transaction.

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