GameStop falls above 7% despite posting a narrower loss and rising sales

GameStop falls above 7% despite posting a narrower loss and rising sales

September 13, 2021: -On Wednesday, shares of video game retailer GameStop fell more than 7% in extended trading after the company reported its second-quarter loss narrowed on each year basis.

The retailer is not providing an outlook for the coming quarters or take questions in its earnings conference call. It was the first call since CEO Matthew Furlong, and CFO Mike Recupero joined GameStop’s leadership.

The retailer said that the U.S. Securities and Exchange Commission had requested additional documents to probe into GameStop and other companies’ trading activity, which was disclosed in May. GameStop said the inquiry is not expected to impact the company negatively.

GameStop shares have been caught up in the meme stock craze. The frenzy has pushed the value of its stock up 957% year to date. It led to wild fluctuations in weight as short-sellers, options traders, and retail investors bid on the store. Although it’s very much less than its 52-week high, GameStop’s market cap has swelled to $14.28 billion, even though it is still posting quarterly losses.

For the quarter ended on July 31, the company reported a net loss of $61.6 million, or 85 cents for each share. In the year-earlier period, GameStop reported a loss of $111.3 million, or $1.71 per share. On an adjusted basis, GameStop had lost almost 76 cents for each share.

Sales increased to $1.18 billion from $942 million a year earlier.

According to Refinitiv, analysts expected the company to lose 67 cents a share on revenue of $1.12 billion.

GameStop is trying to shift its business more toward e-commerce. To improve the delivery of online orders, the company announced it signed a lease for a 530,000 square-foot fulfillment center in Reno, Nevada. The site will help it to expand its fulfillment network across the U.S. coasts.

The retailer is also expanding its customer care operations in the U.S. by leasing a center in Pembroke Pines, Florida.

Editor's Choice

Posts You Might Like

Leave us a message

Subscribe

Fill the form our team will contact you

Advertise with us

Fill the form our team will contact you​