GameStop Corp. (GME) has seen its shares drop by 10.4% over the past three months, significantly underperforming the Zacks industry’s 28.9% gain, the sector’s 16.8%, and the S&P 500’s 15.1% rise. The stock closed at $24.26, which is 32.3% below its 52-week high of $35.81 from May 28.
GameStop reported a 16.9% year-over-year decline in net sales to $732.4 million in the fiscal first quarter of 2025, driven by a 31.7% drop in hardware and accessories sales and a 26.7% decrease in software sales. U.S. revenues decreased by 12.9% to $537.5 million, while international revenues experienced sharper declines, especially in Europe, which fell by 47.4% to $74.8 million.
Despite cutting SG&A expenses by nearly 25% to $225.3 million and increasing gross profit by 3.4% to $252.8 million, GameStop continues to face operational challenges, reporting an operating loss of $10.8 million for the quarter. The company holds over $6.4 billion in cash and marketable securities, supporting its strategic shift towards digital assets, including acquiring 4,710 Bitcoin.
