GameStop Plummets After Struggling Chain Delivers a Grim Forecast
- Sales will decline as much as 10% this year, retailer says
- Company to boost profit by $100 million through cost cuts
A shopper walks toward a GameStop Corp. store in Ottawa, Illinois.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
GameStop Corp. fell to its lowest level since 2004 after predicting sales would tumble this year, providing more evidence that it’s struggling to adapt to changes in the video-game industry.
The retail chain projected after U.S. markets closed Tuesday that sales will drop 5 percent to 10 percent this year. Though GameStop is embarking on a cost-cutting drive as part of a turnaround plan, investors’ confidence is shaken. The stock fell as much as 13 percent to $8.82 in New York trading Wednesday, adding to a 20 percent decline so far this year. That’s the lowest level since September 2004.