GameStop reported a 14% drop in fourth-quarter revenue, falling to $1.10 billion from $1.28 billion year-over-year. The decline reflects ongoing pressure from the industry’s shift to digital downloads and weaker consumer demand.
Hardware and accessories sales dropped to $535.6 million from $725.8 million. The company has pivoted under CEO Ryan Cohen toward trading cards and collectibles.
SG&A expenses fell to $241.5 million from $282.5 million. GameStop also confirmed a potential sale of its French operations.
The company posted net income of $127.9 million, down slightly from $131.3 million last year.
Cohen’s $35 billion performance-based pay plan, tied to over 171.5 million shares, is awaiting shareholder vote.