GameStop Q3 sales drop 20% with more store closures expected
GameStop reported a 20% sales drop in the third quarter, and they are expecting more store closures in the future. Despite the decline in sales, the company managed to turn a profit by cutting costs. GameStop did not hold a conference call along with its earnings report, but they did mention in a filing with the Securities and Exchange Commission that they are reviewing their store portfolio for optimization.
While they haven’t specified which stores will close, GameStop anticipates a larger number of closures than in previous years. Additionally, they are scaling back operations in global markets. They have started winding down their business in Germany and plan to divest operations in Italy.
In the quarter ending Nov. 2, GameStop’s net income was $17.4 million, compared to a net loss of $3.1 million in the same quarter last year. Adjusted earnings were $0.06 per share, beating analyst expectations of a loss of $0.03 per share.
Overall, GameStop’s financials show a mixed picture with declining sales but a successful profit strategy through cost-cutting measures. Keep an eye out for further store closures and changes in their global operations as the company continues to navigate a challenging retail environment.
