Videogame retailer GameStop missed Wall Street expectations for quarterly revenue on Tuesday, as consumers moved away from traditional brick and motor stores to online purchasing.
The company has been struggling with declining sales in its primary business of selling new and used video game discs due to a shift towards digital downloads and game streaming, reports Reuters.
GameStop CEO Ryan Cohen told investors in June the company intends to operate a smaller number of stores as competition remains intense in the gaming console market.
It has also been grappling with customers turning to e-commerce firms for buying video games and collectibles.
The company reported revenue of $798.3 million for the second quarter, compared with $1.16 billion in the same quarter a year earlier. This was below estimates of $895.7 million, according to two analysts polled by LSEG.
Shares of the Grapevine, Texas-based company fell 2% in extended trading.
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