Video game retailer, GameStop Corp.(GME) reported declines during the 2012 holiday season on Tuesday.
The company reported total sales of $2.88 billion for the nine week period ended Dec. 29, 2012, a -4.6% decline from last years reported sales for the same period.
Total comparable store sales declined by -4.4% during the period, while comps in the U.S. saw a -3.5% drop. International comps fell by -6.4%.
The company reported that new hardware sales declined by -2.7%, which included the 320,000 Nintendo Wii U units sold globally. GME saw a -5.1% decrease in new video game sales, as well as a -15.6% drop in pre-owned video game sales.
On the upside, GME saw a 40% increase in digital receipts. The company also reported revenue of $76.5 million in their mobile business during the holiday season. Mobile sales have now reached $160 million YTD. GME reported that global e-commerce sales also improved during the period by 20.5%.
GameStop shares were down -$2.55, or -10.3% during premarket trading Tuesday. The stock has been mostly flat in the past year.
The Bottom Line
Shares of GameStop (GME) have a 4.04% dividend yield, based on last night’s closing stock price of $24.75. The stock has technical support in the $21-$22 price area. If the shares can firm up, we see overhead resistance around the $26-$28 price levels.
GameStop Corp.(GME) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.