GameStop second-quarter sales down 4% By Reuters

(Reuters) – Video game retailer GameStop Corp (NYSE:) reported a 4% fall in quarterly sales on Wednesday as consumers cut back on discretionary spending amid decades-high inflation.

Last year, GameStop was at the center of a social media-fueled trading frenzy. The company overhauled its management in an effort to reverse years of languishing sales and capitalize on the e-commerce boom.

However, GameStop’s results come at a time when gaming companies are facing a slowdown in demand for video games from pandemic highs, raising doubts about their ability to weather an economic downturn.

Some of these worries have also been exacerbated by hardware shortages.

GameStop’s revenue in the second quarter fell to $1.14 billion from $1.18 billion a year earlier.

Still, the company’s shares rose 1.8% to $24.06 after the bell.

GameStop’s net loss widened to $108.7 million, or 36 cents per share in the quarter, from $61.6 million, or 21 cents per share, a year earlier.