GameStop posts $673M annual loss, first since 2012

Brick-and-mortar video game retailer GameStop posted a $673 million loss during the fiscal year that ended February 2, 2019, marking its first annual loss since 2012 and only the third in company history.

GameStop, like most retailers, continues to face strong headwinds as consumers shift from shopping at malls and local retail locations to shopping online. The company has attempted to diversify its business with collectibles and digital sales, but a 22% slump in used game sales for the fiscal year swamped the 12% year-over-year growth in collectibles.

In a statement, GameStop COO and CFO Rob Lloyd says:

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We are pleased to have delivered fiscal 2018 results within our adjusted guidance range, which included fourth quarter and full year sales growth across video game accessories, collectibles and digital… As we think about 2019 and beyond, we recognize the challenges facing our pre-owned video game business and are prepared to address them as we continue to evolve our business model going forward.

GameStop’s stock closed down 4.65% in trading on Wednesday but recovered some of the losses in after hour trading. The stock is down 25.98% over the past year, presenting a possible buying opportunity for daring investors.

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