Dave & Buster's Entertainment swung to a loss in the second quarter, as sales from its entertainment business continued to fall.
The arcade chain said Monday it swung to a loss of $12.5 million, or 36 cents a share, compared with a profit of $11.4 million, or 32 cents a share, a year earlier.
Stripping out certain one-time items, the adjusted per-share loss was 27 cents, while analysts were anticipating earnings per share of 18 cents, according to FactSet.
Revenue fell 2.4% to $544.1 million. Analysts surveyed by FactSet forecast revenue of $556.8 million.
Entertainment-related revenue fell nearly 9% to $332.6 million. That offset an increase in sales from food and beverage.
Dave & Buster's is ramping up its turnaround strategy, which focuses on getting back to its core business, Chief Executive Darin Harper said. Same-store sales at the company's remodeled locations outperform the system.
Same-store sales overall fell 2.9%, better than the 3.4% decline Wall Street was estimating.
Shares of the company slid 12% to $7.38 in after-hours trading.