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Coronavirus killing off GameStop

No.689576 ViewReplyOriginalReport
https://www.foxbusiness.com/economy/no-fun-at-gamestop-after-big-drop-in-sales

>Videogame and collectibles retailer GameStop Corp. reported a larger-than-expected 27% sales drop and a wider adjusted loss for the second quarter amid the pandemic.

>Shares in aftermarket trading dropped by as much as 6%.

https://www.yahoo.com/entertainment/gamestop-e-commerce-sales-800-212501076.html

>Video game retailer GameStop’s online sales skyrocketed during the second quarter, but its net losses still continue to grow as the company is forced to continue slashing inventory and keep most physical locations closed. The retailer’s focus on cutting costs could make it harder for it to keep up with demand for next-generation consoles, which begin hitting shelves in just two months.

>GameStop’s net loss this quarter was $111.3 million, up from roughly $104 million last quarter. Its net sales from gaming products totaled $942 million, down nearly 27% annually.

>While its net loss increased quarterly, GameStop was quick to note in its Sept. 9 earnings report that it has cut losses year-over-year — during Q2 last year the retailer lost $415.3 million.

>Online e-commerce sales across the globe rose 800% during the quarter, and GameStop said those sale statistics are included in the overall comparable sales measurements, which declined roughly 13% in Q2.

>The company slashed inventory in half this quarter, leading to a roughly 30% reduction in expenses compared to the second quarter of last year, GameStop said. But the retailer’s focus on cutting costs and inventory could make it harder for it to keep up with demand for next-generation consoles, which begin hitting shelves in just two months.
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