GameStop (GME) stock continues to suffer from a combination of factors hindering its performance. Videogame sales are slowing, according to data out earlier this month.
GME entered the NFT marketplace, which has also notably slowed. September 7 is when we get the next earnings report from GameStop, and it will be difficult for management to paint a bullish picture.
Revenue growth has already reversed and is now in decline. Revenue from January 2022 to April 2022 went from $2.2 billion to $1.3 billion. Gross profit in the same period went from $378 million to $298 million.
Analysts are expecting EPS of $-0.42 and revenue of $1.27 billion. Again if earnings come in line, revenue is flat, while costs are likely to increase due to inflation. Margin pressure is being felt across all industries.