GameStop Corp (GME) has disclosed a new risk, in the Costs category.
GameStop Corp. faces the persistent challenge of inventory shrinkage, which, if exacerbated, could significantly hinder the company’s operational results and financial stability. While a degree of shrinkage is an inherent retail concern, any escalation in its occurrence or in the cost of countermeasures to deter theft can impinge on GameStop’s profitability. The company’s endeavors to mitigate shrinkage are crucial, yet there is no guarantee that these strategies will effectively contain or diminish the losses associated with this issue. Such uncertainties underscore a notable risk that could weigh on GameStop’s financial outcomes.
Overall, Wall Street has a Moderate Sell consensus rating on GME stock based on 1 Sell.
To learn more about GameStop Corp’s risk factors, click here.
