GameStop Corp lost another 13% on Monday after its annual meeting concluded without a concrete update on the retailer’s future plans.
GameStop hosted annual shareholder meeting on Monday
The video gaming merchandise company could not host its annual shareholders meeting last week as servers crashed due to a massive surge in interest.
$GME, therefore, held its yearly meeting today which did not offer any colour of what the management plans on doing to turn this ship around.
Earlier in June, GameStop reported a 29% year-on-year hit to its net sales in the first quarter to $882 million versus analysts at $900 million at least. The meme stock did, however, narrow its quarterly loss to $50.5 million.
GameStop stock is currently down close to 50% versus its year-to-date high.
What $GME chief executive said during the annual event
On Monday, Ryan Cohen – the chief executive of GameStop indicated plans of cutting costs in pursuit of improving profits and signalled more store closures in the coming months.
Revenues without profits and prospects of future cash flows are of no value to shareholders. This means a smaller network of stores with an expanded assortment of higher value items that fit into our trade-in model.
Cohen did not, however, detail specifics of the firm’s future growth strategies. A strong balance sheet, he added, is a strategic advantage for $GME that currently has about $1.0 billion in cash and equivalents.
GameStop stock does not currently pay a dividend.
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