GameStop Misses Earnings Expectations, Shares Tumble Amid Digital Shift

The video game retailer announces layoffs and exits from international markets in a bid for profitability.

GameStop's fourth-quarter earnings missed expectations with a revenue of $1.79 billion and adjusted earnings per share of 22 cents, falling short of the predicted $2.05 billion and 30 cents per share.
The company's stock plummeted, marking its worst day in a year, as it faces challenges from digital downloads, e-commerce competition, and weakened consumer spending.
GameStop announced layoffs and exits from international markets like Ireland, Switzerland, and Austria as part of cost-reduction measures to achieve profitability.
Despite the financial strain, GameStop reported a slight profit for the fiscal year, with a net income of $6.7 million, compared to a loss in the previous year.
The retailer is under pressure to outline a long-term plan to stay relevant in a rapidly digitalizing gaming market.