GameStop Corp. is running the gamut.
The video game retailer’s stock was trading sharply lower in after-hours trading following weaker-than-expected revenue that was announced during its fourth quarter report Tuesday.
GameStop shares were down by more than 15% in after-hours, trading at about $13.
Just a day ago, the company’s stock rallied up 15%, marking its best day in a few months.
But the good times were short-lived for GameStop, which reported a decline in revenue for the holiday quarter led in part by continued e-commerce competition, waning consumer spending, and a fall in software sales.
GameStop missed Wall Street’s expectations. During the fourth quarter, the company reported revenue of $1.79 billion, about $0.21 cents per share. Analysts expected the company to generate revenue of $2.05 billion, about $0.30 cents per share.
The company reported a profit of $63.1 million during the fiscal fourth quarter, an increase from the $48.2 million it reported during the same period a year ago.
Gaming inflation
Like other retailers, GameStop hasn’t been immune to stubborn inflation. The retailer saw a decline in sales across its hardware and accessories categories, including software and collectibles.
During the recent quarter, hardware and accessories sales fell 61% to $1.09 billion, while software sales decreased 31% to $465 million.
The 40-year-old retailer may have a long road ahead as it aims to capture the attention of consumers who have leaned on purchasing games digitally.
The retailer turned meme stock may be farther removed from the days of in-person shopping as the purchase of physical console games also falls.