GameStop announced a 14% decrease in its sales for the fourth quarter, highlighting continued pressure on its brick-and-mortar operations as more players shift toward digital downloads, streaming, and online purchases.

For the quarter ending January 31, revenue fell from $1.28 billion to $1.10 billion. Net income also declined, dropping from $131.3 million to $127.9 million, though cost-cutting measures partially offset the impact of lower sales.

The hardware and accessories segment experienced the largest drop, with sales decreasing from $725.8 million in the same period last year to $535.6 million. This category includes new and pre-owned video games, which have faced pressure from major publishers promoting digital editions and subscription services.

Under the leadership of CEO Ryan Cohen, the company has been working to reduce expenses and streamline operations. Selling, general, and administrative expenses decreased from $282.5 million a year earlier to $241.5 million.

GameStop also disclosed that it has reached an agreement for the potential sale of its French operations. The retailer has been adjusting its strategy to focus more on trading cards and collectibles in search of more stable sources of demand.

Shareholders are expected to vote on a proposed performance-based compensation plan for Cohen during a special meeting scheduled for March or April. Investors are closely monitoring the outcome of this proposal.