GameStop to Close 180-200 Stores - briefly
(hx) 04:18 PM CEST - Sep,11 2019
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Following plans of restructuring, GameStop has announced it’ll close 180-200 stores by the end of the year, with more closures planned over the next 12-24 months. During GameStop’s earnings call, they also mention of their 5,700 stores, 95% of them are profitable. While that’s an impressive statistic, the representative goes onto say their profits may go down moving forward with the current console generation coming to a close. Additionally, the company is expecting a lighter holiday season this year due to a lack of major blockbusters like Red Dead Redemption 2.
"We expect our year-over-year sales to be down over the next three to four quarters reflecting the end of [the console] cycle," he said. "Compounding this negative impact on sales is the fact that console makers have confirmed the launch earlier than they have in the past. We anticipate that this will lead to much lighter title slate through the rest of 2019 and early 2020 given the end of the cycle timing for current consoles.
"As a result, at this time we expect a percentage decline of comparable same-store sales for 2019 to be in the low teens, which includes a difficult comparable sales challenge from last year, as we're up against blockbuster titles like Red Dead Redemption 2, 2018's number one volume title, without a comparable launch in 2019."
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Updated:10:44 AM CEST Sep,20
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