GameStop Sales Decline as It Cuts Expenses, Changes Investment Policy

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Published December 07, 2023

188betLiên kết đăng nhập — JIM WATSON / AFP via Getty Images

Key Takeaways

GameStop Corp. missed revenue estimates for the third quarter as sales declined in three of its four global markets, but it cut expenses.
The video game retailer reported late Wednesday that sales of hardware, accessories, collectibles, and new software fell in the latest quarter.
GameStop also said it approved a new investment policy on Tuesday, with Chairman and Chief Executive Officer (CEO) Ryan Cohen in charge of the portfolio.

GameStop Corp. (GME) sales slumped in most of its global markets in the third quarter, but the video game retailer said it reduced its expenses and changed its investment policy. After initially falling on the news, shares turned higher Thursday.

GameStop reported late Wednesday that third-quarter revenue was down 9.1% to $1.078 billion, short of analyst estimates. It broke even in the period, while analysts had been looking for a loss of 8 cents a share.

The company said sales rose 12.8% in Europe as supply constraints eased. However, sales sank 16.8% in Australia, 13.3% in the U.S., and 9.7% in Canada.

GameStop said the overall drop in sales was primarily attributable to declines of $47.6 million, or 7.6%, in hardware and accessories, $29.7 million, or 14.3%, in collectibles, and $18.0 million, or 7.5%, in new software.

However, GameStop noted it cut selling, general, and administrative expenses by 24% to $296.5 million.

The company also reported the board on Tuesday approved a new investment policy that allows GameStop to “invest in equity securities, among other investments.” It gave Chair and CEO Ryan Cohen the power to manage the firm’s portfolio.

Once a meme stock darling, shares of GameStop late last month fell to their lowest level since the meme stock craze of early 2021. Despite Thursday's gains, they remain down for the year.

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Key Takeaways