GameStop Corp (NYSE:GME) shares slipped after its fiscal second-quarter results disappointed and its reaffirmed full-year outlook failed to encourage investors.
The video game retailer reported a net loss of US$0.24 per share on revenue of US$1.65bn compared with US$0.22 earnings per share on revenue of US$1.69bn in the previous year’s second quarter.
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The Texas-based company missed Wall Street estimates of US$0.08 EPS, but topped analyst revenue expectations of US$1.62bn.
Shares fell more than 5% to US$15.30 in Thursday after-hours trading in heavy volume and the swoon continued into the premarket.
GameStop reaffirmed its guidance for the year ahead, expecting its total sales to decrease between 2% to 6%.
Shares of GameStop spiked in Wednesday afternoon trading following reports of two potential buyers interested in the company.
GameStop confirmed that it was exploring a buyout, stating it “continues to engage with third parties regarding a possible transaction as part of a comprehensive review of strategic and financial alternatives initiated by the company's board of directors."
The retailer also announced that it would offer early access to gamers who had pre-ordered NBA 2K19 20th Anniversary Edition, allowing them to get their hands on the latest edition a few days before the standard release date.
Zumiez
Zumiez Inc (NASDAQ:ZUMZ) shares soared after the retailer swung to a profit, topping earnings estimates in its fiscal second-quarter results.
The specialty retailer reported earnings of US$0.17 per share on revenue of US$218.87mln compared with a net loss of US$0.02 on revenue of US$192.25mln in the previous year’s second quarter.
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The Washington-based company beat Wall Street estimates of US$0.14 EPS, but fell just below revenue estimates of US$219.25mln.
Shares of Zumiez rose nearly 3% to US$30 in Thursday after-hours trading but settled back to flat in premarket action.
“We delivered our strongest second quarter in several years. Our differentiated merchandise offering combined with our authentic brand positioning and seamless multi-channel shopping experience continue to drive robust comparable sales gains,” said chief executive Rick Brooks in the company’s press release.
The teen-focused retailer offers apparel and accessories as well as skateboards, snowboards and other sports equipment.
For the year ahead, Zumiez expects net sales in the range of US$247mln to US$252mln with sales growth expected to be between 4% to 6%.
A total of 13 new stores are expected to open in fiscal 2018, including 5 stores in the United States, 7 stores in Europe and 1 store in Australia.
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