Game said its full-year profits will be “substantially below previous expectations” as sluggish UK demand drags down overall sales.
The specialist retailer, which posted a slump in its interim profits in March, said anticipated supply in the UK of the latest Nintendo console had failed to meet expectations, negatively impacting overall sales.
Game said that while it anticipated sales in its second half to be up approximately 6%, bolstered by strong trading across its Spanish division, this rise would not meet its forecast for the period.
As a result, alongside ongoing poor sales of Xbox and PlayStation devices, Game said its adjusted full-year EBITDA would not meet expectations.
The video game and console retailer said its profit forecast for the next financial year were not impacted by this profit warning and that upcoming game releases across Xbox, PlayStation and Nintendo would bolster revenues.
It also said it was “exploring [a] new funding arrangement to enable an acceleration of the roll-out” of its in-store gaming arenas, which currently trade out of 12 stores.
A statement from Game said: “The group continues to actively implement its UK action plan, encompassing improved supplier arrangements, enhancements to the customer experience, further operational progress including cost reduction programmes and disciplined cash management.
“Significant efforts are being made on reducing fixed and variable costs across the group’s UK retail footprint, where we have over 220 lease events to manage by the end of 2018.”
The retailer will unveil its preliminary results in October.