Computer entertainment group Game reassured that trading has remained “in line with expectations” in recent months but did not disclose exact numbers.
The retailer reaffirmed that expected capital expenditure this year will be between £30m and £35m and said the integration of the Gamestation chain is progressing well.
Broker Investec rates Game a sell and recommends investors switch into HMV instead. Investec analyst Matthew McEachran said that the retailer faces risks including the erosion of market share in the high-margin second-hand product category as HMV pushes into that area, and the looming threat of digital distribution.
However, Seymour Pierce rates Game a buy and believes the trend in sales and margins will be similar to those reported at the full-year results, when comparable store sales were down but gross margins were up.
Game is also one of Numis’s favoured stocks because of its strong customer franchise in the games market. The retailer will give another trading update at its AGM on July 2.