Tuesday, December 08, 2009

GameStop's Gamer Hell

In fiscal 2008, GameStop (GME-$21.35) generated approximately 40 percent of its sales and 56 percent of its operating profit during the all-important fourth-quarter holiday selling season. Christmas is also critical to the company’s cash flow. For the first half of fiscal 2009, GameStop bled $261 million. Nonetheless, the nation’s largest video game retailer expects to generate free cash flow in the range of $400 million to $425 million this fiscal year — fueled by holiday sales.

Last week Wal-Mart declared “Game On,” announcing 15-20% savings on 25 top video game titles, including bestsellers Rock Band: Beatles (Wii) and Left 4 Dead 2 (Xbox 360). Could GameStop find coal in its Christmas stocking this year?
Read more at BNET Retail….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

1 comment:

Anonymous said...

the heavy selling by founder Riggio back in October was a hint on the direction of GME, oddly it rose in the days afterwards.