GameStop reported a year-over-year total sales decline of 13.3% and a comparable sales decrease of 10.3% in Q1. The weakness was driven by a 20.3% drop in pre-owned sales alongside a 35% dip in new hardware sales and a 4.3% decrease in new software sales, which were somewhat offset by a 10.5% increase in collectibles sales.
The sales decline follows a disappointing 2018 holiday season when sales dropped 5% compared to the previous year. Additionally, the struggling retailer had been seeking a buyer but abandoned its plans in January, though it successfully sold its Spring Mobile division for $700 million in November 2018.
However, GameStop has continued realigning its leadership structure following the appointment of George Sherman as CEO, who said in a statement that he “has been undertaking a thorough review of the business.” The retailer appointed James Bell as EVP and CFO in late May and hired retail veterans for two new positions: Chris Homeister as EVP and Chief Merchandising Officer and Frank Hamlin as EVP and Chief Customer Officer.
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Homeister, who previously worked as President and CEO of The Tile Shop and held leadership roles at Best Buy will be responsible for the company’s overall merchandise operations and strategy. Hamlin, who has been Chief Marketing Officer at both GameStop and Tailored Brands, will drive customer-centric initiatives in areas including marketing, loyalty and the omnichannel business.
