GameStop said Thursday it plans to shut down more stores after failing to meet second-quarter earnings forecasts. The news comes six months after the video game retailer announced in March it had closed 287 stores across the globe in the previous 12 months.
The company now has just over 4,000 brick and mortar locations and says it's identifying additional stores for closure. The company cites dwindling sales due to consumers' shift towards streaming platforms, digital downloads, and online shopping.
In the report released Wednesday, GameStop announced it had made $798.3 million in revenue for the quarter ending Aug. 3, compared to $1.16 billion a year prior, a 31% drop. The report sent GameStop stocks tumbling 15% Thursday. Overall, the stock is down 7% over the past month. However, the company said it made a $14.8 million profit, compared to a loss of $2.8 million a year earlier.
In early 2021, GameStop was at the center of a trading frenzy that sent its stock skyrocketing. It saw some additional volatility this year after online stock influencer "Roaring Kitty," real name Keith Gill, returned to the public eye following a three-year break from social media. His return sent the stock surging 119%, before it crashed 40%.
GameStop is just the latest retailer to announce it was closing stores. Earlier this week, Big Lots filed for bankruptcy and is expected to shutter some of its 1,400 locations.
In the first four months of 2024, nearly 2,600 stores closed in the U.S., putting the country on pace to lose 8,000 retail locations if the trend continues.
Kate McManus ✉
Kate McManus is a New Jersey-based Newsmax writer who's spent more than two decades as a journalist.
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