(Reuters) - Videogame retailer GameStop reported a fall in second-quarter revenue on Tuesday, as consumers moved away from traditional brick-and-mortar stores to online purchasing.
The company has been struggling with declining sales in its primary business of selling new and used video game discs due to a shift towards digital downloads and game streaming. Several customers also buying games and collectibles through e-commerce.
GameStop CEO Ryan Cohen told investors in June the company intends to operate a smaller number of stores as competition remains intense in the gaming console market.
The company continues to face a near insurmountable barrier to its planned return to growth including an ongoing hardware sales decline as streaming services proliferate and its total lack of any strategy to enter new categories with growth potential, analysts at Wedbush said in a note on Friday.
The company reported revenue of $798.3 million for the quarter ended Aug. 3 compared with $1.16 billion a year earlier. Two analysts polled by LSEG were expecting a revenue of $895.7 million.
