Shares of GameStop (GME) are down 18% after the video game retailer reported weak financial results for the final quarter of 2023.
GameStop announced earnings of $0.22 U.S. a share and revenue of $1.79 billion U.S.
Analysts on Wall Street had expected earnings of $0.30 U.S. per share and sales of $2.05 billion U.S.
The company said that its hardware and accessories sales fell 12% year-over-year to $1.09 billion U.S., while its software sales declined 31% to $465 million U.S.
GameStop’s sales have steadily eroded as consumers purchase digital game downloads and sales of physical console games decline.
Separately, GameStop’s board of directors approved a new investment committee that will see chief executive Ryan Cohen invest the company’s excess cash in stocks and other securities.
Prior to today (March 27), GameStop’s stock had declined 33% over the last 12 months and was trading at $15.50 U.S. per share.
