GameStop Corp (NYSE: GME) as a stock may be in poor shape now following the meme stock frenzy in 2021 but the week of Black Friday was a different story in terms of foot traffic.
Store visits were up significantly on Black Friday
According to Placer.ai – a prominent analytics firm – the world’s largest consumer electronics and gaming merchandise retailer saw a steady increase in visits to its stores in the month of November.
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A particularly more notable increase, as per the Placer.ai report, was seen on Black Friday when foot traffic shot up 23.1% on a week-over-week basis. The last time GameStop relished such a surge was in the beginning of August.
That increase in store visits was especially meaningful since it came on top of a nearly 13% growth in the week of November 7th and another 2.9% in the week of November 14th.
At writing, GameStop stock is down over 50% versus its year-to-date high.
Could that momentum sustain through the holidays?
Also on Wednesday, a CNBC survey revealed that the U.S. consumers planned on spending less this holiday season. Still, the Placer.ai report talks of a possibility that the recent momentum will continue this winter.
This momentum should continue into the winter holiday season as parents pick up the highly coveted PlayStation 5 for their kids. Consumers looking for a special gift or seeking a unique retail experience may boost visits further.
GameStop is scheduled to report its fiscal Q3 results today, after the bell. Consensus is for it to lose 29 cents a share this quarter versus 35 cents per share a year ago.
Wall Street currently has a consensus “underweight” rating on the GameStop stock.
Source: https://invezz.com/news/2022/12/07/gamestop-store-visits-up-on-black-friday/