Video game and accessory retailer GameStop struggled last quarter, reporting a net sales drop of 3.6 percent, falling short of both the company's and analysts' expectations.
GameStop blamed the poor results on weak sales of new software and hardware, citing a 9 and 20 percent drop respectively in its earning statement.
The company posted third-quarter adjusted earnings per share of $0.54, missing Bloomberg's consensus estimate of $0.59, while total global sales fell 3.6 percent to $2.02 billion, missing an initial forecast of $2.15 billion.
The announcement was poorly received with shares plummeting by as much as 18 percent in pre-market trading on Monday, according to Business Insider.
Despite the poor quarter, however, the company maintained its forcast for full-year adjusted earnings per share of $3.66 to $3.86, with sales growth at stores open at least a year of 2 percent to 6 percent.
"A solid slate of new video games, coupled with contributions from our diversified AT&T, Apple, and ThinkGeek businesses" and "in-store collectibles" should help the company hit those targets, CEO Paul Raines said in the statement.
The stock was down about 11 percent in early trading, reported Financial Magazine. Year-to-date, it's up about 3 percent.
GameStop Corp., a Fortune 500 and S&P 500 Company headquartered in Grapevine, Texas, is a global, multichannel video game, consumer electronics and wireless services retailer, operating more than 6,900 stores across 14 countries.
