During their latest conference call, GameStop CEO George Sherman claimed that the company are in a reboot phase. During the call, Sherman called this reboot “a holistic and extensive review of all aspects of our business and how we can transform it. This is going to be a critical piece of our transformation. It is not simply a cost-cutting initiative. Though, there will be an element of that to the overall process. I expect this process to drive margin improvement, including some better sourcing, pricing and promotions and leveraging our scale.”
Sherman also said that the company will cut stores in areas that don’t make the most revenue and focus more on the ones that don’t. Other things will be to explore markets to expand into if they are a natural fit for its brand and business. The company has also eliminated its quarterly dividend, which will save it $157 million per year.
This comes just one day after their stock dropped 35% in one trading day and finished today (June 6, 2019) up 1.38%.
