Dave & Buster's Entertainment Rises On Revenue Beat, Steady Guidance: Retail Cheers

The arcade-restaurant chain indicated that business improved in May and early June.

Dave & Buster's Entertainment (PLAY) reported a decline in business last quarter, but a smaller-than-expected sales dip and steady annual guidance lifted shares and boosted retail investor sentiment.

The arcade-restaurant chain said revenue fell 3.5% to $567.7 million, compared to FactSet analysts' expectations of $566.8 million.

Adjusted profit dropped to $0.76 per share, below the expected $1.01.

Shares initially fell in the after-market trading, before rising to 4.7% up as of the last reading.

"Our results in May were very encouraging with a particularly robust Memorial Day weekend of solidly positive sales to kick off the summer," interim CEO Kevin Sheehan said on the analyst call.

"Results so far in June continue to show improvement."

In Q1, growth in same-store revenue from food and beverage, a segment that accounts for about a third of the topline, was flat. Entertainment revenue from arcade games, live sports events, and merchandise fell 5%.

On Stocktwits, the retail sentiment shifted to 'extremely bullish' from 'neutral' the previous day. Message volume jumped nearly 3,000% in the last 24-hour period.

Comments were mixed, with users guessing whether the stock would rise or fall on Wednesday.

One user recommended shorting the stock, stating that the results were unfavorable.

Another user said, "Double down," expecting the stock to hit $40.

As of their last close, Dave & Buster's shares are down 11.4% year-to-date.

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