GameStop said Thursday it plans to shut down more stores after failing to meet second-quarter earnings forecasts. The news comes six months after the video game retailer announced in March it had closed 287 stores across the globe in the previous 12 months.
The company now has just over 4,000 brick and mortar locations and says it’s identifying additional stores for closure. The company cites dwindling sales due to consumers’ shift towards streaming platforms, digital downloads, and online shopping.
In the report released Wednesday, GameStop announced it had made $798.3 million in revenue for the quarter ending Aug. 3, compared to $1.16 billion a year prior, a 31% drop. The report sent GameStop stocks tumbling 15% Thursday. Overall, the stock is down 7% over the past month. However, the company said it made a $14.8 million profit, compared to a loss of $2.8 million a year earlier.
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