These 2 Charts Show GameStop's Biggest Problems
GameStop (NYSE: GME) the stock is a comeback story for the ages. The beaten-down video game retailer delivered incredible gains for investors who bought in before the frenzy early last year. GameStop the company, however, is another story entirely.
GameStop primarily sells video game consoles, physical copies of new games, and used games. That last category has historically been the most lucrative for it, although the company stopped disclosing used-game sales and gross margin by category in early 2020.
With gaming going digital, the used-games business has been in decline. Since game consoles and new games aren't exactly big moneymakers for retailers, GameStop's overall gross margin dropped to 22.4% last year. That's down from 29% in 2017, and it doesn't compare well to other retailers.
Source Fool.com
