GameStop says placing ‘significant emphasis on cost containment’

The company states: “The initial phase of GameStop’s transformation largely occurred over the course of 2021 and the first half of 2022. This period was primarily focused on rebuilding the Company’s decaying infrastructure and strengthening GameStop’s value proposition, including investing in the Company’s enterprise systems, technology capabilities, store leaders and associates, and product catalog and offerings. GameStop entered a new phase of its transformation during the second half of 2022. As a result, GameStop is focused on three overarching goals: establishing omnichannel retail experience, achieving profitability, and leveraging brand equity to support growth. We are taking the following steps, with a significant emphasis on cost containment – Improving margins through operational discipline and increased emphasis on higher margin collectibles and pre-owned product categories; Ensuring the Company’s cost structure is sustainable relative to revenue, including taking steps to optimize our workforce to operate efficiently and nimbly; Prudently increasing the size of our addressable market by growing our product catalog across PC gaming, collectibles, consumer electronics, toys, augmented reality, virtual reality and other categories that represent natural extensions of our business; and Sustaining a superior customer experience supported by a seamless in-store and ecommerce experience with speedy delivery to our customers. As part of our efforts to achieve sustained profitability, we continue to evaluate our portfolio of assets to validate their strategic and financial fit and to eliminate redundancies. During the first quarter of fiscal 2023, we began the process of exiting our operations in Ireland, with all stores in the region closing in the second quarter of fiscal 2023. While we expect our cost containment efforts to yield reductions in SG&A expenses in the long term, we have incurred and may continue to incur severance and other non-recurring costs related to these efforts in the short term.”