Thank you, and welcome to GameStop's Third Quarter Fiscal 2018 Earnings Conference Call. This conference call will include forward-looking statements which are subject to various risk and uncertainties that could cause actual results to differ materially from expectations. Any such statements should be considered in conjunction with Cautionary Statements and Safe Harbor statement in the earnings release and risk factors discussed in reports filed with the SEC. GameStop assumes no obligation to update any of these forward-looking statements or information. A reconciliation and other information regarding non-GAAP financial measures discussed on the call can be found in the Company's earnings release issued earlier today, as well as in the Investors section of the Company's website. Now I'd like to turn the call over to the Company's Interim CEO, Shane Kim. Please go ahead, sir.

Thank you everyone for joining us this afternoon. Before we discuss our Q3 results, I want to take some time to share a few thoughts on our holiday business and several initiatives that we're working on and then I'll turn it over to Rob for more detailed review of the quarter and outlook for the remainder of the year. Following Rob's comments, we will be available to answer any questions you may have. So first, as we discussed in September, our Board of Directors has undertaken a broad range review of strategic and financial alternatives to enhance shareholder value and best position GameStop for success. This thorough and comprehensive process remains ongoing. While we understand the high level of interest in announcing a conclusion to that process, we are focused on ensuring the best possible outcome for our Company, our shareholders, our associates and our other stakeholders. We feel good about the options available to us and we'll continue to be deliberate in choosing the best path forward. As such and as I have said previously, we will provide you with a further update upon completion of the Board's review. As a part of the ongoing review, we took an important step last week in signing a definitive agreement to divest our Spring Mobile business and its roughly 1,300 AT&T wireless stores to Prime Communications, the largest privately held AT&T authorized retailer in the United States. This transaction, which attractively values the Spring Mobile business as $700 million and is expected to close in January, will generate significant cash proceeds and equally importantly, will enable us to increase our focus on serving our customers' entertainment needs across video games and collectibles. We are excited about this transaction and view it to be an enabling one for GameStop. While we are…

Thank you, Shane. Good afternoon, everyone. I'll take this time to walk you through our third quarter results and then share with you our thoughts on the remainder of the year. As you know, we've been looking forward to the back half of 2018 given the strong title line up and the anticipation around marquee launches across several franchises. For the third quarter, the October title launches drove double-digit growth in software and we also delivered double-digit growth in hardware, accessories, collectibles and digital. Overall for the quarter, we delivered a sales increase of nearly 5%, a strong performance across key categories that demonstrates our position as the leading authority in video games. From an earnings perspective, on an adjusted basis, we delivered operating earnings that increased 16% to $94 million from $80.8 million in the third quarter of fiscal 2017 and adjusted EPS of $0.67 per diluted share compared to $0.54 per diluted share last year. I'll go into more detail shortly, but during the quarter we incurred a $587.5 million non-operating, non-cash intangible asset impairment charge primarily related to goodwill which was triggered by the sustained decline in the Company's share price and market value. While we were pleased with our share gains in the third quarter, not every title met our expected performance. And while, we're also pleased with our sales performance over the Black Friday weekend and Cyber Monday, our overall third quarter and forecasted Q4 profitability is below our expectation. And as a result we're revising our outlook for the fiscal year. I'll go into more detail about the drivers behind reducing our earnings outlook in a moment, but I want to first discuss the third quarter. From a top line perspective, third quarter sales increased 4.8% and our comparable store sales increased 2.1%. The…

[Operator Instructions] We'll take our first question from Curtis Nagle with Bank of America.

So I guess the first one is, why are you guys I guess not in the market in terms of buying back stock, but you guys have a pretty big cash position now, you're theoretically probably getting $700 million sometime this quarter. I guess is there anything preventing you from buying back stock, let's say, maybe selling of Spring not been completed?

Given that we're in the middle of a strategic review, given that we were in the discussions surrounding the sale of the AT&T business and all of those kinds of factors, obviously we're in possession of information that would prevent us from being able to buy stock at this time.

So when Spring is completed, are you still prevented or - because you're still technically in strategic review, would you still stay out of the market?

We would stay out of the market until the strategic review process is complete, at which point we'll be able to report the results of that and that would then change our possession of material inside information.

Do you have any timeline when that could be?

No.

And then my next question, just maybe walking through the puts and takes of guidance. So top line not really changed, it looks like mix is worse with used weak and hardware stronger, you'll see a little bit of upside from tax. So what else is driving, what looks like, I don't know, maybe $60 million or $70 million tick down of EBIT. Is that just on promotions or is there something else we should be thinking of?

I would say that the biggest drivers are the software performance, the pre-owned performance and then to a lesser degree, the promotional activity that we had. And then as I outlined in the script, yes, this shift toward hardware and what that does to margin.

We'll take our next question from Cristina Fernandez with Telsey Advisory Group.

It's actually Joe Feldman on. Wanted to ask first about PowerUp Rewards. I know you guys are doing some work to revamp the membership program a little bit. I was hoping you could give a little update on that. And also, are you seeing any change in the membership levels? Is it going up still? Is it going to come down a little bit, maybe you could talk about that.

Yes, we have a lot of activity going on, not just around PowerUp Rewards, but overall in the marketing space and as we've talked a lot about back in the spring time, in the June timeframe when we were on the road, it has to do with the overall customer experience in our stores, understanding customer behaviors, what our customers expect out of the shopping experience at GameStop. We've done a lot of customer segmentation studies, we've gotten a lot of market research and we've got firms now that are working very hard on helping us to reenvision that customer experience as we go forward. Inside of all of that activity would be an analysis of the PowerUp Rewards program and how we can drive better value for customers inside that. Overall, the program has grown this year.

And then I wanted to ask about pre-owned. Obviously I know that was a little weaker, you did explain I think pretty well as to why software was down. Should we think about is it - I don't know first quarter, second quarter next year when we should expect the turn because it's finally kind of that six month lag, I guess when you'd finally start to see the games or is it a little sooner than that where the people that buy Red Dead Redemption right away are already coming in January or something?

It takes a while for those newer released products to come back in trade and obviously the phenomenon we've seen there over the last few years is that the online play has the customers holding on to the games for longer period of time. We do expect that Switch will continue to grow as I mentioned, the growth there was pretty dramatic, but it is not yet a large enough part of the overall mix to make much of a difference on the rate. And we continue to see demand around the hardware side of the pre-owned business.

And then I could just sneak one more in. Just to be clear, which games were you guys surprised by, I think you've called out Black Ops maybe, I thought I heard Sporting Goods - was it Madden or something that was a little weaker than normal or basketball?

I'd say, as I said in the comments, Black Ops and the sports titles that launched in the August-September timeframe were not up to our expectations, as well as a couple of November titles.

Which is why the fourth quarter has changed. Okay, thank you, and I’ll pass it to somebody else, good luck with the Holiday season.

We'll take our next question from Stephanie Wissink with Jefferies.

Hi, this is Ashley on for Steph. Thanks for taking our question. So regarding the collectibles business and your eSports merch, we want to know how should we think about the gross sustainability and the penetration of mix over time?

So the collectibles business continues to grow for us and we're excited about the future prospects of being able to grow that business. I'm not sure what you mean by the eSports merch, we've done some testing with respect to some of that. But really overall collectibles, we think has a long runway, it's a growing business. More of our competitors have increased their positions in that business. As we said in the past, the thing that we see that drives growth and differentiation for us is when we can get those unique and exclusive products or in the case where we don't get exclusive products, how we can be first to market for those things.

And then any feedback or initial takes from the eSports tests?

I'm sorry, from what?

From testing the eSports…

Not much to report yet.

We'll take our next question from Anthony Chukumba with Loop Capital Markets.

I had one question and one follow up. In terms of my primary question, I thought you said something interesting in terms of the weakness in used and that you specifically mentioned that digital access to older title is hurting your pre-owned software sales growth. Is that a more recent phenomenon because I know if I recall historically, new sales is really tied to the inventory. If you had the inventory you could sell it. And so, I'm just wondering how recent of a phenomenon this is?

We are seeing more of the impact of that in recent months and it does have to do with how customers can get some of those older titles, the very inexpensive titles that you can get through either subscription memberships or online in a pretty heavily discounted mode.

And then my - just a quick follow-up and apologies if you talked about in the first few minutes of the call, I would say I had some technical difficulties and called in few minutes after you had begun. But any update in terms of your CEO search?

No, you did miss that and I talked about that. The search is still ongoing. We're working with a leading executive search firm, but we're unlikely to name a new CEO until the Board's strategic review process is concluded.

[Operator Instructions] We'll take our next question from Ben Schachter with Macquarie.

So when you're looking at the strategic options, you didn't sell the whole Company, just to tech brands. Did you have offers for the whole business? Have you had any offers for the video game business and they're sticking points around valuation or other areas or just no offers yet on the video game business? And then I have a couple of follow-ups.

Sorry, we are not commenting on the process. So I can't really answer your question.

On the CEO, when you're looking for a CEO, how do you interview anyone right now if you don't really know the outcome of the strategic review, like what actually would you be looking for at the moment?

Well, I think as I've said all along, we're looking for the best strategic leader for the business. As part of the strategic review, we have a very clear understanding of how we see the Company evolving moving forward. And so we're anticipating that we are going to - well, not just anticipating but we are operating the Company as we need to as we move forward. So we are undertaking a lots of steps as clearly the sale of Spring Mobile is the best example of some of the outcomes of that strategic review. So I think we have a pretty clear sense of how we need to evolve the Company and we're going to dovetail that with the search for the new CEO in terms of his or her vision for what they think the Company can and should do moving forward. But we have to continue to operate the Company and move the Company forward as well.

Rob, just a couple of quick ones for you. So what titles actually underperformed in November and on Red Dead, did that outperformed your launch expectations and how is it doing post launch?

We're very pleased with Red Dead. So that wasn't one of the ones. Obviously, you can see in the market what the Metacritic scores are around fallout and that's impacted its sell-through. I'll probably just leave it at that.

And then just last one, can you remind me the difference between margins for used hardware and versus new hardware?

They're within a handful of points of each other, very close.

Thank you. At this time there are no further questions in the queue. I would like to turn the call over back to Interim CEO, Shane Kim, for closing remarks.

I'd like to thank everybody again for your time today, and we look forward to continuing to update you on our progress in the future. Thank you very much.

Thank you. Ladies and gentlemen this concludes today's teleconference. You may now disconnect.