New video game consoles generated a good holiday at GameStop, but then something else happened.
AT&T changed the way GameStop is compensated for running AT&T branded stores in 2017 causing it to take a big charge to earnings in the fourth quarter. It’s also feeling the trend of consumers taking longer to replace their smartphones. GameStop operates 1,400 AT&T stores and is the brand’s largest authorized retailer.
The new Nintendo Switch and the Xbox One X and “a solid increase” in its collectibles business, which includes its ThinkGeek brand, resulted in a sales increase of 10.6 percent, GameStop said.
Grapevine-based GameStop said Friday its holiday sales in November-December totaled $2.77 billion. Same-store sales increased 11.8 percent, up 13.7 percent in the U.S. and 7.9 percent in its overseas stores. Worldwide online sales were up 21.5 percent.
However, shares were trading lower this morning after GameStop said it expects to take a charge related to its hundreds of AT&T stores.