The markets have reacted dramatically to GAME’s full year revenue target downgrade issued last week.
The crash comes despite GAME’s repeated assurances that it continues to outperform the UK market.
At the start of play on Wednesday November 16th, the day on which GAME issued its statement, GAME Group’s share price stood at 14.025p. At one stage yesterday that price had fallen to just 5.91p.
GAME’s shares were trading as high as 20p as recently as November 14th.
At the close of play last night it had risen to 6.62p. That’s a drop of over 50 per cent since last week. They started the year at 70p, representing a year-to-date decline of 91 per cent
The retailer had until last Wednesday predicted a full year like-for-like sales decline of between -3 per cent and flat. It now expects a best-case scenario of -7 per cent which, as the retailer now routinely highlights, is “still over-performing the overall market”.
Overall GAME Group reported a sales decline of 10.6 per cent for the 41 weeks ending November 12th. Like-for-like sales were down 8.6 per cent. In the UK and Ireland overall sales fell 13 per cent and like-for-like sales dropped by 10.5 per cent.