GameStop's quarterly sales decline on weak traffic in its stores

PS5 games by PlayStation are seen for sale at a GameStop in Manhattan

GameStop reported a decline in its first-quarter net sales as it advanced its quarterly report by four days and announced a more than $3 billion stock offer, sending the video games retailer’s shares down 10% before the bell on Friday.

The company, which largely relies on brick-and-mortar stores and has been grappling with customers turning to e-commerce firms for buying video games and collectibles, was set to release its results on June 11.

Grapevine, Texas-based GameStop posted net sales of $881.8 million in the quarter ended May 4, compared with $1.24 billion a year earlier.

Its net loss narrowed to $32.3 million in the quarter, compared with a net loss of $50.5 million a year earlier.

The company also announced plans to raise more than $3 billion by selling up to 75 million shares, days after it made nearly $933.4 million by selling 45 million shares.