GameStop (GME +1.1%) announces that it received a limited supply of Nintendo Switch systems available immediately for customers. The units are only available at the company's stores.
“It's perfect timing to have additional Nintendo Switch units arrive just days before the launch of Mario Kart 8 Deluxe, one of the biggest and most loved games from Nintendo,” notes GameStop merchandising exec Eric Bright.
The flash sale isn't expect to last through the weekend.
Sales of the Nintendo (OTCPK:NTDOY) have dazzled so far, leading in part to Morgan Stanley resuming coverage on the stock with an Overweight rating.
"The Switch is proving to be very competitive, and we anticipate strong sales for core game titles, boosting our conviction in OP growth through F3/20," writes analyst Masahiro Ono.
"Near term, we think the stock will rise as sales trends for likely hit titles are factored in," he adds.
The impact of red-hot Nintendo Switch sales on GameStop's results will be a little clearer in about a month when the retailer reports earnings and updates guidance.
Piper Jaffray surveyed U.S. teenagers to see what's hot and what's not.
Positive trends were reported for Apple (previous coverage), Disney (NYSE:DIS) and Facebook (NASDAQ:FB) -- while Pandora Media (NYSE:P) and eBay (NASDAQ:EBAY) didn't hold up as well in this year's polling.
Food consisted of 24% of a teen's budget to top the 19% spent on clothes. Starbucks (NASDAQ:SBUX) and Chick-fil-A both held double-digit "mindshare" in the new survey. Chipotle (NYSE:CMG) snagged the third place position for favorite restaurant chain. Piper analyst Nicole Regan Miller says McDonald's (NYSE:MCD) remained "generally strong" - while Five Guys and Red Robin Gourmet Burgers (NASDAQ:RRGB) moved up.
Forget about fashion, say teens. Under Armour (NYSE:UA), Michael Kors (NYSE:KORS), Crocs (NASDAQ:CROX), The North Face (NYSE:VFC), Ralph Lauren (NYSE:RL), Fossil (NASDAQ:FOSL) and Vineyard Vines all lost relevancy compared to a year ago. In perhaps a surprise, Adidas (OTCQX:ADDYY) shot up over the last year in teen footwear mindshare in comparison to Nike (NYSE:NKE), scoring especially well with young women.
Heads up GameStop (NYSE:GME) as the highest percentage of teens ever said they plan to download games digitally.
Not a shocker to parents, but Netflix (NASDAQ:NFLX) topped out the list of favorite ways for a teen to consumer video and Snapchat (NYSE:SNAP) was the top ranking social media platform. Amazon (NASDAQ:AMZN) was the favorite website of a stunning 43% of all teenagers to easily outdistance second-ranking site Nike, which was named by 5%.
GameStop (NYSE:GME) is sized up by Wall Street after reporting holiday sales were ravaged by promotions within the industry. Not a complete surprise, but the company expects to close between 2% and 3% of its stores this year.
Bank of America Merrill Lynch (Neutral): Downgrades the retailer to Neutral from Buy as it considers the weak software lineup for this year. An increase in share buyback activity isn't anticipated.
Wedbush (Outperform, $25 PT): "We expect shares to trade at a compressed EPS multiple until GameStop slows the decline in its core video game business."
Baird (Outperform, $24 PT): Advises that "long-term/value-oriented" might be interested in buying on the pullback.
Telsey Advisory (Buy, $24 PT): Notes the FY18 EPS forecast is back-half weighted due to the timing of new software, hardware and iPhone 8 launch.
Macquarie: "Our concerns for 2017 are primarily with the video game side with GameStop's collectibles and mobile businesses progressing at a solid pace."
GameStop (NYSE:GME) reports comparable sale fell 16.3% in Q4 amid what the company calls "weak" video game demand.
Comparable sales were down 20% in the U.S. during the quarter.
New hardware sales declined 29% and new software sales fell off 19%. Pre-owned sales dropped 6.7% to $680.6M to account for 22.3% of all sales vs. 20.7% last year.
A bright spot for GameStop in Q4 was the collectibles category, with sales up 28% Y/Y to $212M.
GameStop expects FY17 revenue of -2% to +2% and FY18 EPS of $3.10 to $3.40 vs. $3.72 consensus. "As we continue our transformation plan, we will also be focused on managing SG&A spend, rationalizing our global store portfolio, and maximizing free cash flow generation to drive shareholder value," says CEO Paul Raines.