GameStop's first-quarter revenue declines as online gaming demand rises
Videogame retailer GameStop reported a decline in first-quarter revenue on Tuesday as customers increasingly opted for digital downloads over purchases at its brick-and-mortar stores, sending its shares down 4.6 per cent in after-hours trading.
The Grapevine, Texas-based company, known for its rollercoaster stock performance and Reddit-fueled rally in 2021, has long struggled to adapt to the rapidly changing gaming industry as consumer preferences shift away from physical game purchases towards digital downloads, game streaming and online shopping.
Despite expanding its ecommerce platform to include digital downloads and online merchandise, GameStop is yet to fully capitalize on the shift.
Revenue from its hardware and accessories unit, which includes sales from new and pre-owned video games, dropped about 32 per cent in the reported quarter.
Following the closure of nearly 600 U.S. stores in 2024, the company also announced the closing of a "significant number" of additional stores this year, signaling that its retail business continued to flounder in spite of turnaround attempts.
The company's efforts to reduce costs helped it report a net profit of $44.8 million for the first quarter, compared with a net loss of $32.3 million a year ago.
Early in May, GameStop sold its Canadian subsidiary, Electronics Boutique Canada, which operated its Canadian stores and e-commerce business. GameStop expects the sale of its operations in France to close during fiscal year 2025.
It reported an operating loss of $10.8 million in the quarter, which includes $35.5 million of impairment charges related to international restructuring efforts.
GameStop revealed that it purchased 4,710 bitcoins between May 3 and June 10 for cash. It had said in March that the board had approved the addition of bitcoin as a treasury reserve asset.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Independent Singapore
2 hours ago
- Independent Singapore
‘No one can beat you at being you': LinkedIn exec shares advice for young job seekers in the age of AI
As the job market rapidly evolves and artificial intelligence is rewriting the rules of work, Aneesh Raman, LinkedIn's Chief Economic Opportunity Officer, believes young professionals can still be optimistic. In a story published by the Business Insider, Raman shared his insights drawn from a career doing war reporting, political speechwriting, tech, and now shaping the future of work. In that interview, Raman offers valuable points of view that job seekers and those currently working can learn from. Tougher job market, but not a hopeless one According to a recent story published by Business Insider , current statistics depict a challenging picture for job hunters. The New York Federal Reserve revealed that the unemployment rate for new college graduates (ages 22–27) hit 5.8% in March, more than the national average of 4%. However, Raman sees this moment not just as an obstacle, but as a chance to reconsider how people must view career-building, that they must approach it and begin with a profound 'personal exercise.' Discovering your 'story of self' Raman suggests that entry-level workers start by creating what he dubs a 'story of self.' This is not a planned-out pitch for recruiters, but an account entrenched in one's distinct blend of abilities, experiences, and passions. 'The most important—and hardest—task for young workers is defining what makes them unique,' he says. 'It's about identifying the skills built through both lived and learned experience, and turning that into a compelling, confident narrative.' His path, which includes roles as a war journalist, a speechwriter for President Obama, and a tech leader, is anything but linear. Yet with these roles, a common strand surfaced – a flair for descriptive storytelling. It's that unswerving aptitude, not job titles, that eventually moulded his present role at LinkedIn. 'Your job might not make sense on paper, but your skillset can,' he says. 'That's how you build toward a job no one else can do better than you.' Make learning a daily habit—starting with AI Beyond defining one's story, Raman says young people must create a routine of learning every day, with AI mastery at the forefront. 'The tools are out there, but how are you using them in service of your goals? How are they helping you master the skills you want to build?' he asks. 'Over time, your curiosity will guide your learning—and that's what creates long-term value.' He believes that AI, notwithstanding existing disruptions, offers a huge advantage for young people in the workforce. Since businesses are still trying to figure out how to effectively implement and adapt to technology, this creates an opportunity for early-career professionals to proliferate and take on more purposeful work. A new age of career ownership Raman sees a future where individuals will have extraordinary autonomy over their careers, particularly if they advance non-technical 'human' capabilities such as communication, flexibility, and collaboration. 'The knowledge economy we've known is fading,' he clarifies. 'In its place, we're seeing a rise in the value of uniquely human capabilities. These are now the real hard skills.' Employers and educators must swing their focus accordingly, he added, with special concentration on AI knowledge and entrepreneurial outlooks. Naturally, not everyone will need to launch a startup, but every worker should espouse the attributes of an entrepreneur: inquisitiveness, flexibility, and imagination. See also Malaysia considers social media licence requirement for LinkedIn Embracing the challenge and the possibility While Raman admits that at present, getting into the workforce is exceptionally tough, he recommends that young people should not allow fear to take over. 'This is a different moment than any other generation has had,' he says. 'You have the tools to build a career on your terms. AI can help you grow, scale ideas, and learn faster than ever before.' The future of work, he believes, will be demarcated by people who can do what no one else can —be themselves. 'No one can beat you at being you,' he says. 'And that's the career you should build.'
CNA
3 hours ago
- CNA
Trump willing to extend trade talks deadline, but says that won't be necessary
WASHINGTON: US President Donald Trump said on Wednesday (Jun 11) he would be willing to extend a Jul 8 deadline for completing trade talks with countries before higher US tariffs take effect, but did not believe that would be necessary. Trump told reporters before a performance at the Kennedy Center that trade negotiations were continuing with some 15 countries, including South Korea, Japan and the European Union. "We're rocking in terms of deals," he said. "We're dealing with quite a few countries and they all want to make a deal with us." He said he did not believe a deadline extension would be "a necessity." Trump said the US would send out letters in coming weeks specifying the terms of trade deals to dozens of other countries, which they could then embrace or reject. "At a certain point, we're just going to send letters out ... saying, 'This is the deal. You can take it, or you can leave it,'" Trump said. "So at a certain point we'll do that. We're not quite ready." US Treasury Secretary Scott Bessent told lawmakers earlier that the Trump administration could extend the July trade deal deadline - or "roll the date forward" for countries negotiating in good faith, in certain cases. A 90-day pause in Trump's broadest, "reciprocal" tariffs will end on Jul 8, with only one trade deal agreed with Britain and some 17 others at various stages of negotiation. "It is highly likely that those countries - or trading blocs as is the case with the EU - who are negotiating in good faith, we will roll the date forward to continue the good-faith negotiations," Bessent told the House Ways and Means Committee. "If someone is not negotiating, then we will not." Bessent's remarks marked the first time a Trump administration official has indicated some flexibility around the expiration date for the pause. Bessent reiterated the possibility of more negotiating time at a second hearing before the Senate Appropriations Committee on Wednesday, saying it was "my belief that countries that are negotiating in good faith could be rolled forward." He said the European Union had previously been slower to come forward with robust proposals, but was now showing "better faith", without providing specifics. Trump echoed that more upbeat view on Wednesday, saying, "They do want to negotiate." A deal struck on Tuesday in London with China to de-escalate that bilateral trade war is proceeding on a separate track and timeline, with an Aug 10 deadline set last month. The president has been the final decision-maker on his administration's tariff and trade policies, but Bessent's influence has increased in recent months and the Treasury chief has been viewed by many trading partners as a moderating voice. Trump announced the pause on Apr 9, a week after unveiling "Liberation Day" tariffs against nearly all US trading partners that proved to be so unexpectedly large and sweeping that it sent global financial markets into near panic. The S&P 500 Index plunged more than 12 per cent in four days for its heftiest run of losses since the onset of the COVID-19 pandemic in early 2020. Investors were so rattled they bailed out of safe-haven US Treasury securities, sending bond yields rocketing higher. The dollar sank. Markets started their recovery on Apr 9 when Trump unexpectedly announced the pause. The recovery continued in early May when the Trump team agreed to dial back the triple-digit tariff rates it had imposed on goods from China. Those events have given rise to what some on Wall Street have parodied as the "TACO" trade - an acronym for Trump Always Chickens Out. "The only time the market has reacted positively is when the administration is in retreat from key policy areas," Democratic Representative Don Beyer of Virginia told Bessent before pressing him on what to expect when the July deadline expires.
CNA
3 hours ago
- CNA
Oil prices ease as market assesses Middle East tension
Oil prices eased on Thursday, reversing gains made earlier in the Asian trading session, as market participants assessed a U.S. decision to move personnel from the Middle East ahead of talks with Iran over the latter's nuclear-related activity. Brent crude futures were down 30 cents, or 0.4 per cent, to $69.47 a barrel at 0433 GMT, while U.S. West Texas Intermediate crude was 23 cents lower, or 0.3 per cent, at $67.92 a barrel. A day earlier, both Brent and WTI surged more than 4 per cent to their highest since early April. U.S. President Donald Trump said the U.S. was moving personnel because the Middle East "could be a dangerous place". He also said the United States would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful. Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday. "Some of the surge in oil prices that took Brent above $70 per barrel was overdone. There was no specific threat identified by the U.S. on an Iranian attack," said Vivek Dhar, director of mining and energy commodities research at Commonwealth Bank Australia. Response from Iran is only contingent on U.S. escalation, Dhar said. "A pull back (in price) makes sense, but a geopolitical premium that keeps Brent above $65 per barrel will likely persist until further clarity on U.S.-Iran nuclear talks is revealed," he said. The U.S. is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations in the Middle East due to heightened security risk in the region, Reuters reported on Wednesday citing U.S. and Iraqi sources. Iraq is the second-biggest crude producer after Saudi Arabia in the Organization of the Petroleum Exporting Countries. Military dependents can also leave Bahrain, a U.S. official said. Prices weakened having hit key technical resistance levels during Wednesday's rally, plus some market participants are betting on Sunday's U.S.-Iran meeting resulting in reduced tension, said OANDA senior market analyst Kelvin Wong. Trump has repeatedly said the U.S. would bomb Iran if the two countries cannot reach a deal regarding Iran's nuclear-related activity including uranium enrichment. Iran's Minister of Defense Aziz Nasirzadeh on Wednesday said Iran will strike U.S. bases in the region if talks fail and if the U.S. initiates conflict. U.S. Special Envoy Steve Witkoff plans to meet Iranian Foreign Minister Abbas Araghchi in Oman on Sunday to discuss Iran's response to a U.S. proposal for a deal. Even so, expectations of a deal are evaporating as Trump has said he is less confident about whether he can convince Iran to stop its nuclear activity, ANZ analysts in a research note.
