Analysts are predicting UK-based retailer GAME may be poised to announce up to a 60 percent drop in profits from a high of £90 million the previous year as it continues restructuring for more focus on online sales.
According to Deutsche Bank, the firm is expected to post profits of £37.5 million, which is a decrease of £0.5 million compared to earlier predictions in which GAME expected profits of £37 to £39 million before taxes.
Christmas sales for GAME were down 4.1 percent across all stores with the UK and Ireland down 3.3 percent. Like-for-like sales dropped 2.1 percent overall and 0.5 percent in the UK.
Back in February GAME announced that it planned to triple online sales by 2013, from £100 to £300 million.
The firm is also expected to report weak current trading, with Deutsche expecting a drop in UK like-for-like sales of 8 percent and an international drop in sales of 5 percent. Still, the bank is suggesting investors hold off on selling stock due to GAME’s net cash reserves of £110 million.
Back in February, CEO Ian Shepherd said the firm planned to triple online sales by 2013, from £100 to £300 million.
“Great businesses are good at reinventing themselves,” he said. “Following their customers as their customers change. Gaming customers are changing.”
“The market is getting more confusing. That creates as opportunity for the aggregator, the expert, the guide. In the games market today there is not that guide across the whole breadth of the market. By deploying our strengths we can position ourselves as that aggregator.”