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GameStop Corp.

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GameStop posted healthy holiday sales numbers driven by robust sales of new video game consoles and collectibles. However, fall in news software sales, along with narrowed earnings guidance range alarmed investors. Sales during the holiday period rose 1.8%, while comps increased 4.4%. New hardware sales jumped 4.5%, while Technology Brands revenue surged 59.9%. Despite these strengths, the basic concern was the softness prevailing in new software sales, raising apprehensions about the impact of digital downloads on the same. New software sales witnessed a 9.7% decline during the holiday season. Management now envisions fiscal 2015 earnings in the range of $3.69-$3.75 narrower than the prior estimate of $3.66-$3.86 per share.

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