Right… first things first, here’s a link to the report.
And this is what their stock is doing, courtesy of MarketWatch.
Their stock price dropped like their new hardware sales, which declined by 35% also. That’s including the fact that Switch sales are still strong, so it’s PS and XBOX sales that got flushed.
That’s not their only problem though. New software is down (4.3%), Pre-owned is down (20.3%), and digital is down (6.7%). Accessories are “up” 0.6%, which is flat as far as I’m concerned, and collectibles are actually up 10.5%. To put some numerical perspective to it, the Q1 net income for last year was $28.2M USD. The Q1 for this year is $6.8M.
Their quarterly dividend is being halted immediately to save money and their current guidance is -5% to -10% sales. To be fair, the cutting of the dividend is a major reason why the stock price has dropped so hard, I imagine.
I mean, I’m at a loss. To borrow a word from the internet’s current slang, “oof.” This is… not a good sign for Gamestop. I get it, though. We’re now towards the end of the PS4/XBO life-cycle and most of the people that want one likely already have one. Anyone who doesn’t, well, may as well at least wait and see what E3 has in store, yeah?
Y’all take care, I just don’t know what else to say.