GameStop shares are collapsing after the company said it expects sales to fall this quarter

GameStop shares fell as much as 7% in after-hours trading Thursday after the company announced results that showed it expects a decline in sales in Q1.

The games and electronics retailer reported adjusted earnings-per-share of $2.40, higher than its preliminary estimate of $2.19 to $2.25. Net sales totaled $3.53 billion, somewhere in the middle of its preliminary range.

During the quarter, strong sales of gaming hardware and electronics offset a drop in new software sales.

Its guidance for this quarter and full year missed estimates. GameStop sees Q1 EPS in a range of $0.58 to $0.63, while analysts had expected $0.70.

It expects revenues to decline by between 4% and 7%. For the full year, it projects that sales could rise 3% at best, and be flat at worst.

It expects the strong dollar to continue to hurt sales, taking out as much as $200 million in full-year revenues, and $0.08 in EPS.

Here’s a chart showing the stock’s drop after-hours. Based on Thursday’s closing price, it was up 8% for the year, and down 26% over the past 12 months.

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