GameStop Corp. GME completed the divestiture of Simply Mac to Cool Holdings. In May 2019, the company had signed a definitive agreement to sell all outstanding shares of Simply Mac to Cool Holdings. Financial terms of the deal remain undisclosed.
Simply Mac is an authorized reseller of Apple products in smaller cities in the United States, with lack of Apple services. Currently, it has 41 retail stores across 18 states in the country. The addition of these stores will enable Cool Holdings to achieve its goal of 200 stores in Americas.
Per sources revealed, the move is part of GameStop’s strategy to shut down its underperforming businesses and focus on areas of high-profit potential. In line with this strategy, some Simply Mac stores were closed in 2017 due to non-productivity issues.
Prior to this divestiture, GameStop concluded the sale of Spring Mobile business on Jan 16, 2019, as part of its comprehensive review process. Going ahead, the company is on track to shut 180-200 underperforming stores worldwide by the end of fiscal 2019.
Further, GameStop is progressing with its business transformation plans that include optimization of portfolio and strengthening its non-gaming businesses. Apart from this, the company is exploring opportunities in the digital arena. Moreover, GameStop is undertaking efforts to revive its physical video game retail business. In sync with this, the company has undertaken partnerships with Complexity Gaming, Infinite eSports as well as Entertainment and Envy Gaming among others.
All said, we hope that the above-mentioned strategies will boost this Zacks Rank #5 (Strong Sell) stock and help it to get back on track. Notably, shares of this company declined 48.2% in the pasts six months compared with the industry’s decline of 3.2%.
Stocks to Consider
Zumiez ZUMZ has a long-term earnings growth rate of 13.5% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aaron’s AAN has a long-term earnings growth rate of 15% and a Zacks Rank #2 (Buy).
Canada Goose Holdings GOOS has a long-term earnings growth rate of 28.5% and a Zacks Rank #2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Aaron's, Inc. (AAN) : Free Stock Analysis Report
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
GameStop Corp. (GME) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research