GameStop has wrapped up the first quarter of its 2019 fiscal year, reporting a 13.3 percent decrease in sales as demand for new and pre-owned hardware and software falters.
The company reported global sales of $1.5 billion for the quarter ending May 4, 2019, down from $1.8 billion the year prior. GAAP net income for the first quarter came in at $6.8 million, down from $28.2 million last year, though the company notes 2018’s numbers were boosted by the sale of Spring Mobile that year.
While its collectibles and accessories sales saw a year-over-year increase (10.5 percent and .6 percent respectively), sales of the company’s other categories fell by between 4.3 and 35 percent year-over-year.
New hardware sales fell the most, a 35 percent decrease that the company says were led by a decline in Xbox One and PlayStation 4 sales (but offset by rising Nintendo Switch sales). Pre-owned sales, including both hardware and software, fell 20.3 percent, while new software sales decreased by 4.3 percent due to weaker new title launches compared to last year.
Recently appointed GameStop CEO George Sherman notes that the company is perusing a “multi-year transformation effort” that ultimately aims to bring the retailer out of the slump it’s fallen into in recent years “focusing on the core elements of our business that are meaningful to our future, and a disciplined approach to capital allocation.” Last week GameStop announced the new chief merchandising officer and chief customer officer roles as well as a reflection of its efforts to reposition the company.