ELBO reports tonight at the close...ELBO Management better have learned from the mistakes of GME management earlier this week!Earlier this week, GME reported comparable Same Store Sales -> Up +30.3% and the company blew out their earnings estimates by 15% ... On that GREAT news... GME's stock DROPPED -25% the next day!GME was beaten down because they reported a 2% drop in their gross margin for the quarter related to an industry wide shift toward new game sales.GME has a 20% margin on new games, and a 50% margin on used games. Wall Street punished GME for kicking ass in their core market--> NEW GAME SALES !!!!I hope ELBO Management addresses this, clarifies this new game sale trend, and educates the RETAIL SALES ANALYSTS... even though the Video Gaming analysts already know about it! There is no question the video game market is booming.... The MARGIN issue is ridiculous!
ELBO is up over a point in after hours. Expect a very good day tomorrow, for both ELBO and GME.