Video game retailer GameStop GME-N said on Tuesday it had cut an unspecified number of jobs to reduce costs and reported lower fourth-quarter revenue amid rising competition from e-commerce firms and weak consumer spending in an uncertain economy.
Shares of the Grapevine, Texas-based company tumbled 15 per cent in extended trade after the results.
U.S. video game publishers Take-Two Interactive Software and Electronic Arts also delivered lackluster earnings last month as the gaming industry faces pressure from high borrowing costs, sticky inflation and a slowdown in demand from pandemic peaks.
GameStop posted revenue of $1.79 billion for the fourth quarter, compared with $2.23 billion a year earlier.
The video game retailer’s recent cost-reduction measures also included an exit from its operations in Ireland, Switzerland and Austria.
On an adjusted basis, the company reported fourth-quarter earnings per share of 22 cents, compared with 16 cents a year earlier. GameStop has also been grappling with the ongoing shift to digital sales of video games and competition from online retailers such as Amazon.com and Ebay.
GameStop's shares slumped on Wednesday, as the brick-and-mortar video game retailer reported a decline in fourth-quarter revenue on the back of a spending slowdown and rising competition from e-commerce firms.
Reuters