Gamestop’s Shares have fallen more than 13 percent today as the company reported a decline in sales in all areas during the fourth quarter. Gamestop reported on Thursday that Hardware sales and Software sales have fallen by 19.3%. once the companies most dominant counterparts.
The major video game retailer reported that an estimated that it’s fourth quarter sales have fallen at 13.65 matching 3.05 billion. The company says it’s expected to close down more than 150 stores that have had a slowdown in sales altogether. Which equates to 2 or 3 percent of its Global footprint. Gamestop has also claimed on Thursday that their video game category has become “weak.” Although, undoubtedly, this news may come from their recent “Circle-of-life” program, that had gamers and store employees of the giant in an uproar. With various rants and open discussions about the topic.
“The fourth quarter [ended Jan. 28] was significantly impacted by aggressive console promotions by other retailers on Thanksgiving [Day] and Black Friday,” Gamestop wrote in its release. Companies that are competition to GameStop would include, Amazon, Walmart, Toys-R-Us, Bestbuy and Target. All of which have been releasing special programs to benefit their customers further, in turn, forcing GameStop out of its own business.
Furthermore, Gamestop states that it will not be releasing quarterly earnings and instead will focus on annual earning reports instead to “take away” from investor distraction and in an attempt to “diversify” the company business.
Shares have currently closed at an estimated $20 a share.
Last modified: March 27, 2017