Dave & Buster's Swings to Loss as Entertainment Sales Keep Falling

Dow Jones
Yesterday
 

Dave & Buster's Entertainment swung to a loss in the second quarter, as sales from its entertainment business continued to fall.

The arcade chain said Monday it swung to a loss of $12.5 million, or 36 cents a share, compared with a profit of $11.4 million, or 32 cents a share, a year earlier.

Stripping out certain one-time items, the adjusted per-share loss was 27 cents, while analysts were anticipating earnings per share of 18 cents, according to FactSet.

Revenue fell 2.4% to $544.1 million. Analysts surveyed by FactSet forecast revenue of $556.8 million.

Entertainment-related revenue fell nearly 9% to $332.6 million. That offset an increase in sales from food and beverage.

Dave & Buster's is ramping up its turnaround strategy, which focuses on getting back to its core business, Chief Executive Darin Harper said. Same-store sales at the company's remodeled locations outperform the system.

Same-store sales overall fell 2.9%, better than the 3.4% decline Wall Street was estimating.

Shares of the company slid 12% to $7.38 in after-hours trading.

 
 

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