GameStop has reported a 45% decrease in sales for the second quarter, coinciding with plans to shutter additional store locations

GameStop continued to face challenges in its financial performance for the second quarter ending August 3, 2024, experiencing a 45% decline in sales compared to the previous year. The company reported net sales of $798 million, a decrease from $1.16 billion in Q2 2023. Despite the drop in sales, GameStop achieved a net income of $14.8 million, a significant improvement from the $2.8 million loss recorded in the same period last year.

Examining the breakdown of sales, GameStop saw reductions across its segments: a 24.5% decrease in hardware and accessories, a 47.8% fall in software, and a 17.7% drop in collectibles.

In response to these results, GameStop plans to close additional stores. According to a report by Reuters, the company is in the process of identifying locations for closure and intends to shut down more outlets than in recent years.

GameStop has also filed to offer up to 20 million shares, with intentions to use the funds for general corporate purposes, including acquisitions and investments aligning with its investment policy. Following this news, the company's stock fell by 10%, as reported by Reuters.

The financial struggles were not isolated to the second quarter; GameStop's first quarter also showed a 26% decrease in sales year-on-year, resulting in a net loss of $32.3 million, as covered by GamesIndustry.biz.

Earlier in the year, GameStop experienced a temporary surge in its share price linked to the reemergence of Keith 'Roaring Kitty' Gill, a notable figure from the 2021 meme stock phenomenon, on the platform X, a development documented by GamesIndustry.biz. Simultaneously, his role as a catalyst in the original rally was revisited.

Additionally, GameStop concluded several initiatives this year, including shutting down its crypto marketplace and reportedly undergoing layoffs. The company also closed its long-standing publication, Game Informer.