Dave & Busters (PLAY) reported earnings on Tue 10 Sept 19 (a/h)

** charts before earnings **

 

** charts after earnings **

Dave & Busters beats by $0.05, reports revs in-line; lowers FY20 revs, comparable store sales, and net income guidance

Reports Q2 (Jul) earnings of $0.90 per share, $0.05 better than the S&P Capital IQ Consensus of $0.85; revenues rose 8.0% year/year to $344.6 mln vs the $344.29 mln S&P Capital IQ Consensus.

Comparable store sales decreased 1.8%.The decrease in comparable store sales was driven by a 2.0% decline in walk-in sales, which was partially offset by a 0.1% increase in special events sales.

In light of the competitive environment and because its value-creation initiatives will take time to execute, PLAY lowers guidance for FY20.

• Sees FY20 revs of $1.338-$1.359 bln vs. prior outlook of $1.365-$1.390 bln and vs. the $1.37 bln S&P Capital IQ Consensus.
• Lowers net income guidance to $91-$100 mln from $103-$113 mln.
• Lowers comparable store sales guidance to -3.5 to -2.0% from -1.5% to +0.5%.
• Continues to expect 15-16 new stores in FY20.

Play is focused on five priorities to drive long-term value creation, including revitalizing existing stores, building deeper guest engagement, disciplined cost management, investing in highest-return new store locations, and continuing capital return to shareholders.