Shares Of GameStop Collapsed After This News Came Out

GameStop shares fell more than 13% on Friday after the company released its fourth quarter results on Thursday.

The company saw declines in almost all of its segments, reporting a 29.1% decline in hardware sales and a 19.3% decline in software sales. These two segments had previously been revenue boosters for the video game company.

Sales decreased 13.6 percent to $3.05 billion in the fiscal fourth quarter while comparable sales declined 16.3%. According to FactSet, these fell in line with analysts estimates.

Adjusted quarterly earnings came in at $2.38 per share, which was ahead of the Thomson Reuters estimate of $2.28, but came in 2 cents lower than the same period one year ago.

Looking ahead, the company expects to close between 2 to 3 percent of its global store footprint in 2017. According to the company, the video game category has become “weak.”

The company wrote in its earnings release, “The fourth quarter [ended Jan. 28] was significantly impacted by … aggressive console promotions by other retailers on Thanksgiving [Day] and Black Friday.”

Chief Financial Officer Rob Llyod said in a statement that moving forward, GameStop will no longer provide quarterly earnings nor same-store-sales guidance.

Lloyd said, “We believe that providing only annual guidance will reduce investor distraction as we continue to diversify the company and seek to maximize long-term shareholder value.”

Shares of the stock have fallen more than 30% over the last 12 mnths and are down more than 18% year-to-date.

Disclaimer: We have no position in GameStop Corp. (NYSE: GME) and have not been compensated for this article.