Dave & Buster’s shares slide 8% on wider-than-expected Q3 loss, income miss

DALLAS – Dave & Buster’s Leisure, Inc. (NASDAQ:PLAY) reported a wider-than-expected loss and missed income estimates for its third quarter, sending shares down 8.1% in after-hours buying and selling.

The leisure and eating venue operator posted an adjusted lack of $0.45 per share, worse than analysts’ expectations for a lack of $0.33 per share. Income fell 3% YoY to $453 million, beneath the consensus estimate of $469.93 million.

Comparable retailer gross sales decreased 7.7% in comparison with the identical interval final yr. The corporate cited an unfavorable calendar shift, modifications in deferred leisure revenues, and hard comparisons to favorable changes within the prior yr interval as elements impacting outcomes.

“Regardless of this progress, our monetary outcomes for the third quarter, which is traditionally our lowest seasonal quantity quarter of the yr, had been negatively impacted as in comparison with the prior yr quarter by a fabric fiscal calendar mismatch, antagonistic climate throughout many necessary areas, disruption to sure shops in our comp set as they underwent rework development and sure uncommon gadgets within the prior yr affecting comparability,” stated Darin Harper, Chief Monetary Officer.

The corporate additionally introduced CEO Chris Morris has resigned to pursue different pursuits. Board Chair Kevin Sheehan will function interim CEO whereas a seek for a everlasting alternative is performed.

Dave & Buster’s opened three new places through the quarter and accomplished 11 remodels. The corporate repurchased $28 million of shares in Q3, bringing year-to-date buybacks to $88 million.

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