The company closes the last quarter of 2018 with sales 27.5% below the previous year. They expect a complicated 2020.
The GameStop video game chain will close several dozen stores across the United States after chaining a 2019 year with several quarters reporting sales well below the previous year. The giant, which once managed to dominate the US video game market, has reported sales of 1,183 million dollars this past Christmas, 27.5% below the same period in 2018.
Financial report with a large drop in annual turnover
Thus, the turnover figures of the franchise remain in the annual calculation "well below expectations," said its CEO, George Sherman, in the presentation of quarterly results. "Although we expect that the challenges we have encountered in the fourth quarter of 2019 will continue in the fiscal year 2020, we believe that we have a correct long-term action plan to optimize profitability and increase the company's profits after launch of the new consoles at Christmas 2020 ”, he argues, in relation to PlayStation 5 and Xbox Series X.
The reaction of investors has not been expected | GameStop (January 14, 2020); Daniel Ahmad
The projection of GameStop is to continue falling in turnover throughout 2020. With a lower amount of revenue, the number of active stores throughout the United States will be reduced, as reflected in the list of GSClosing unofficially with more than 50 establishments, a portal that includes the name of registered stores for closing in the near future.
The reaction of the bag has not been made to beg. According to Yahoo Finance, GameStop (GME) has closed this Tuesday with a 13.35% drop in its individual shares.
It should be remembered that, last September, GameStop announced the dismissal of more than 50 employees following an internal restructuring, a movement that was nothing more than the beginning of a constant decision that took another hundred workers ahead before the end of last fall. In total, there were more than 200 stores planned for closure in the coming months. The movement begins to materialize.
