Proactive Investors - GameStop Corp (NYSE:GME) shares fell more than 10% after the video game retailer’s annual shareholder meeting was light on details about its future plans.
In brief introductory remarks, CEO Ryan Cohen highlighted the company’s focus is on improving profitability across a “smaller network” of stores, implying that additional store closures could be coming.
Investors are hoping Cohen can turn around the company’s fortunes as it has struggled from the shift away from brick-and-mortar video game purchases to online gaming.
“Revenue without profits and prospects of future cash flow are of no value to shareholders,” Cohen said during the meeting, which had been postponed from last week due to technical issues.
“This means a smaller network of stores with an expanded assortment of higher-value items that fit into our trade-in model.”
“We are focused on building shareholder value over the long term. We are not here to make promises, or hype things up. We’re here to work,” Cohen said.
Aside from Cohen’s opening remarks, no other details were given about GameStop’s strategy going forward.
Shareholders were not able to ask questions during the meeting, which lasted about half an hour.
Shares of GameStop were down 10.8% at about $25.60 on Monday afternoon.
Shares of the company had been volatile in the past month following the return of retail trader Keith Gill, who sparked the meme stock craze in 2021 with his bullish comments on social media about GameStop.
The stock gained more than 180% over two days before falling about 40% in a day after GameStop released its first quarter results early and unveiled plans to sell millions of shares.