A weak fourth quarter and stiff competition are forcing GameStop to close 2% to 3% of its stores. The company reported growth in both its Technology Brands and Collectibles businesses, however.
After reporting weak fourth-quarter earnings, GameStop announced it intends to shutter at least 150 of its 7,500 stores worldwide. The company’s shares slid more than 12% in afternoon trading Friday.
GameStop reported a 13.6% drop in global sales to $3.05 billion compared to a year ago. The company blamed weak sales of certain blockbuster games during the holiday period and „aggressive console promotions“ from its competitors. The company saw a 29% drop in new hardware sales while new software sales fell by 20%.
