GameStop Shares Slide on Outlook Cut

GameStop Corp. shares fell Wednesday after it slashed its outlook for the year and said it would report a disappointing third quarter amid underperforming sales of new videogames.

"Our expectation was that the new titles released in October would provide a catalyst for new software sales, but despite gaining market share, the titles underperformed," said Paul Raines, Gamestop's chief executive.

Shares slid 12% to $20.65 in morning trading.

GameStop has struggled to keep pace in the increasingly digital gaming world.

The company said it now expects full-year earnings to range from $3.65 to $3.80 on a same-store sales decline of 6.5% to 9.5%, below its already-downbeat prior forecast for per-share earnings between $3.90 and $4.05 on a same-store sales decline of 1.5% to 4.5%.

For the third quarter, the company said preliminary results show earnings in a range of 45 cents to 49 cents a share, with same-store sales down between 7% and 6%. The company previously expected same-store sales between a 2% decline and a 1% gain with earnings on a per-share basis between 53 cents and 58 cents.

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(END) Dow Jones Newswires

November 02, 2016 10:15 ET (14:15 GMT)

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