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Sales continue to slide downhill as GameStop continues its reboot

For the quarter ending August 3, GameStop saw a 21.2 percent increase in collectibles year over year, but nearly every other source of income saw a year-over-year decrease in sales.

Sales in nearly every single category are down year-over-year at GameStop during the quarter ending August 3, a decline that comes as the company is attempting to refocus its business, and one that company leadership attributes largely to the end of current console generations.

Overall, the company reported a GAAP net loss of $415.3 million for its second quarter, up from last year’s net loss of $24.9 million.

Global sales decreased 14.3 percent year-over-year, coming in at $1.3 billion for the quarter. Taking a category-by-category look, the retailer saw a year-over-year increase in only one sector: collectibles. Sales in that category were up 21.2 percent year-over-year, and the company notes double-digit growth both domestically and internationally.

New hardware sales are down 41.1 percent, attributed to recently announced next-gen consoles, new software sales are down 5.3 percent due to weaker title launches on non-Switch platforms, and accessories sales are down 9.5 percent overall.

Sales for pre-owned goods, including both hardware and software, is down 17.5 percent.

GameStop leads into the press release for this quarter’s results with a breakdown of its ongoing GameStop Reboot initiative and the four areas it is focusing on in an effort to boost financial performance and support the company’s long-term success. Those steps include optimizing its core business, re-angling as a “social/cultural hub for gaming”, relaunch its website and build out its digital platform, and establish better relationships with vendors.

“We are committed to acting with a sense of urgency to address the areas of the business that are critical to achieving long-term success and value creation for all our stakeholders. We will set GameStop on the correct strategic path and fully leverage our unique position and brand in the video game industry,” said GameStop CEO George Sherman in that press release.

GameStop has been in the process of attempting to work itself into a better financial position for some time. Notably during Q2, GameStop moved to consolidate ThinkGeek’s online storefront into GameStop’s existing platform, and tapped the design firm R/GA to help reboot the physical locations for its stores.

The company also recently laid off over 120 staff, including nearly half of Game Informer’s editorial force, as part of its ongoing cost cutting measures, though those layoffs occurred just weeks after the close of the second quarter.

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