NEW YORK (AP) — Gamestop CEO Ryan Cohen said the struggling video game retailer will focus on cutting costs and long-term profitability at an annual shareholder meeting Monday.
Cohen added that this would imply a “smaller network of stores” – suggesting more store closures could be in sight. No further details about the reductions were immediately provided.
“We are focused on building long-term shareholder value,” Cohen said in a brief opening statement at the top of the call. “We’re not here to make promises or hype things, we’re here to work.
Gamestop shares fell more than 12% after Monday’s meeting.
Gamestop’s annual shareholder meeting was originally scheduled for Thursday, but was postponed after a technical glitch prevented many eager investors from logging into the livestream. A spokesperson for Computershare, the company hosting the webcast, pointed out “unprecedented demand.”
That only seemed to fuel anticipation in what the Grapevine, Texas-based company’s leadership had to say. Dozens of people took to social media this weekend and early Monday to post about the upcoming meeting, adding to the buzz.
At the center of the meme stock frenzy, Gamestop saw a resurgence last month after Keith Gill, better known as “Roaring Kitty,” came back online for the first time in three years.
All eyes were on whether Gamestop can make a comeback. Roaring Kitty returned to YouTube earlier this month to tell his hordes of followers that he still believes GameStop’s management team can save the struggling company after a disappointing earnings report.
There is still a long way to go. Gamestop managed to narrow its losses in the first quarter, but revenue fell as sales of hardware and accessories, software and collectibles weakened. Last week, GameStop also filed paperwork with securities regulators to sell up to 75 million shares to raise proceeds of nearly $2.14 billion.
