(CTN News) _ In the midst of decades of high inflation, GameStop Corp., one of the world’s largest retailers of video games in the world,
reported a 4 percent drop in its quarterly sales on Wednesday, as consumers tightened their belts amid decades of high inflation.
In the past year, you may remember that GameStop was at the center of a social media and trading frenzy that was fueled by social media.
To turn around its fortunes, the company overhauled its management in a bid to turn around years of stagnant sales and take advantage of the e-commerce boom in order to restore its fortunes after years of stagnant sales.
In spite of this, GameStop’s results come at a time when video game retailers are facing a slowdown in demand for video games
Following two years of pandemic highs, raising questions about the ability of these companies to weather any economic downturn in the future.
The shortage of hardware has also contributed to some of these concerns, which have been exacerbated by the lack of hardware available.
According to GameStop, its revenue was down from US$1.18 billion in the first quarter to US$1.14 billion in the second quarter as compared to US$1.18 billion in the first quarter.
Nevertheless, after the bell rang, the company’s shares still rose by 1.8% to US$24.06, the highest price in five years for the company’s shares.
A year ago, it is estimated that GameStop’s net loss for the quarter was US$61.6 million, or 21 cents per share, compared with US$108.7 million, or 36 cents per share, during the same quarter a year ago.
How many Gamestops are left?
Now GameStop runs just around 4,816 stores today.
But, what happened last year with GameStop’s stock has turned the company into a legend. From January 4, 2021 to January 29, 2021, the GameStop Corp.