DALLAS - Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) reported a wider-than-expected loss and missed revenue estimates for its third quarter, sending shares down 8.1% in after-hours trading.
The entertainment and dining venue operator posted an adjusted loss of $0.45 per share, worse than analysts' expectations for a loss of $0.33 per share. Revenue fell 3% YoY to $453 million, below the consensus estimate of $469.93 million.
Comparable store sales decreased 7.7% compared to the same period last year. The company cited an unfavorable calendar shift, changes in deferred entertainment revenues, and tough comparisons to favorable adjustments in the prior year period as factors impacting results.
"Despite this progress, our financial results for the third quarter, which is historically our lowest seasonal volume quarter of the year, were negatively impacted as compared to the prior year quarter by a material fiscal calendar mismatch, adverse weather across many important regions, disruption to certain stores in our comp set as they underwent remodel construction and certain unusual items in the prior year affecting comparability," said Darin Harper, Chief Financial Officer.
The company also announced CEO Chris Morris has resigned to pursue other interests. Board Chair Kevin Sheehan will serve as interim CEO while a search for a permanent replacement is conducted.
Dave & Buster's opened three new locations during the quarter and completed 11 remodels. The company repurchased $28 million of shares in Q3, bringing year-to-date buybacks to $88 million.
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