GAME Suffers Further As Key Executives Leave
Share price falls along with total annual sales.
Retail chain GAME Group is not having a great morning, as two key executives step down from the board following what MCV calls a "disappointing set of financial figures." The company's share price fell 10 per cent to 89 pence in response to the news.
Despite the fact that GAME beat expectations - figures show a pre-tax profit of £90.4 million in the year up to 31st January, compared to a forecast of £87.5 million - its performance is actually 27 per cent down year-on-year, with an annual sales drop of 10 per cent to boot.
What this means for the chain of GAME and GameStation stores that is owned by the Group remains to be seen. However, with many towns seeing those stores in close proximity to each other, there is a risk that some may be closed down for cost-cutting purposes.
We do know that GAME's chairman, Peter Lewis, is blaming the dip on the recession; "Our results were delivered against the backdrop of a very difficult trading environment, which saw the global PC and video games market decline by over 20 per cent."
Both Chief Executive Lisa Morgan and CEO Terry Scicluna have announced their resignations, with the ship-steering handed over to interim CEO Chris Bell.
Despite the fact that GAME beat expectations - figures show a pre-tax profit of £90.4 million in the year up to 31st January, compared to a forecast of £87.5 million - its performance is actually 27 per cent down year-on-year, with an annual sales drop of 10 per cent to boot.
What this means for the chain of GAME and GameStation stores that is owned by the Group remains to be seen. However, with many towns seeing those stores in close proximity to each other, there is a risk that some may be closed down for cost-cutting purposes.
We do know that GAME's chairman, Peter Lewis, is blaming the dip on the recession; "Our results were delivered against the backdrop of a very difficult trading environment, which saw the global PC and video games market decline by over 20 per cent."
Both Chief Executive Lisa Morgan and CEO Terry Scicluna have announced their resignations, with the ship-steering handed over to interim CEO Chris Bell.
Companies:
Game
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