GameStop Corp. fell as much as 18 percent in early trading after predicting sales would tumble this year, providing more evidence that it’s struggling to adapt to changes in the video-game industry.
The retail chain projected Tuesday that sales will drop 5 percent to 10 percent this year. Though GameStop is embarking on a cost-cutting drive as part of a turnaround plan, investors’ confidence is shaken. The stock fell as low as $8.70 in premarket trading, adding to a 20 percent decline so far this year. That would be the lowest level since 2005.
GameStop, the largest independent retailer of video games, hasn’t kept up with the fast-changing industry. While gamers once relied on brick-and-mortar stores to buy discs and consoles, they’re increasingly making purchases online.
Profit last quarter totaled $1.45 a share, short of the $1.58 average of analysts’ estimates.
