Despite having a record fourth quarter, with same store sales up 20% and sales during the 9-week holiday period up 35% to $2.3 billion, shares of the Grapevine, TX company dropped 5.15% at close today.
The reason behind the drop in share price is a lower-than-expected rise in guidance. Also factoring in is the general feeling that the economy is about to tank and take down the retail sector with it. Here is a good article from Money.Cnn.com if you're really interested.
What I wanted to get at, also from the same article, is what Michael Pachter, everybody's favorite video game analyst, feels is contributing.
"He thinks growth will slow as more people buy gaming consoles from mass retailers instead of specialty shops like GameStop."
What? Does this even make sense? When it comes to video game consoles the price is set. It's the same whether you buy an Xbox 360 at Target or at GameStop. So, why would somebody who has been buying at GameStop all of a sudden turn to Wal-Mart?
I just don't understand his quote. And, if you factor in that GameStop pretty much has the market on used (aka, cheap) video games, then doesn't that bode well for them even in desperate times?