GameStop shares fall after it files to sell securities, says first quarter sales declined

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Shares of GameStop tumbled 10% in premarket trading Friday after the video game retailer said it plans to sell securities and reported preliminary results that showed a sales decline in the first quarter.

The firm said it now expects net sales to be in the range of $872 million to $892 million, down from compared to $1.237 billion in the same quarter last year. The brick-and-mortar video game company has been grappling with stiff competition from e-commerce-based competitors.

In a separate filing, GameStop indicated its plan to offer different securities ranging from preferred stock, depositary shares, warrants, purchase contracts, units and subscription rights that may be convertible into or exercisable or exchangeable for its common stock.