GameStop has published a financial update that highlights the company’s performance through the second quarter of the year. It’s not looking good for the retailer, with the key talking point being a 45% decrease in sales year-on-year. It has been a rough few months for the company, as earlier this year, layoffs were made and stores were closed down.
This financial update is an indicator that further cuts will need to be made.
Going Down
GameStop might have recorded a rise in net income, but sales were down 45% year-on-year, the recent financial report confirmed. This follows a downturn in the Q1 financial report – and it’s a growing figure. Earlier this year, the company reported a 26% drop in sales.
This news comes weeks after GameStop laid off the entire Game Informer team and shut the publication down after it had been operational for more than thirty years. It also arrives a few months after plummeting stock prices that haven’t yet recovered by the time of writing.
It didn’t help that the firm just offered up 20 million more shares to the market, causing the stock value to cascade by another 10%.
Per a report published by Reuters, GameStop’s leadership team is preparing to shut down more stores across North America. It’s no big secret that the rise of online shopping and digital-based gaming has impacted the likes of GameStop quite hard, and we’re seeing it now in black and white.
In the United Kingdom, GAME recently revealed a horizon loaded with cuts, layoffs, and store closures.
Are you sad to see GameStop floundering? Let us know on the Insider Gaming Forum.
For more Insider Gaming coverage, check out the news that the PS5 disc drive is selling out
