GameStop’s revenue beat market expectations on Thursday as the widely followed retailer announced new digital expansion plans.
Recent earnings reports from GameStop (GME) have led to volatility in stock trading, thanks to the tracking of the stock’s large retail investor.
GameStop stock rose more than 4% in US morning trading, but accelerated in the afternoon session more than 10% above its Wednesday close. Since the beginning of the year, the title is down nearly 10%.
GameStop (GME) stock price
Tracing its roots to a Dallas, Texas software retailer called Babbage’s in 1984, GameStop sells video games, consumer electronics and accessories.
The GameStop brand also includes international retailer EB Games and digital magazine Game Informer. The company operates retail stores in the United States, Canada, New Zealand, Australia and Europe.
1st quarter results
For the fiscal first quarter ended April 30, loss per share widened to $2.08 from $1.01 a year earlier, as sales increased 8% to $1.38 billion (1. £09 billion, €1.29 billion).
Analysts had expected a loss of $2.49 a share on sales of $1.32 billion, according to figures widely available on financial news sites.
Video game retailers like GameStop have struggled to make a profit as gamers prefer to download and stream their games rather than buying physical game discs. Store closures due to the pandemic have led the company to bolster its e-commerce offering.
Inventory at the end of the quarter reached $917.6 million from $570.9 million a year earlier, GameStop said, reflecting a continued focus on improving merchandise inventory levels to meet demand. increased customer base and offset supply chain headwinds.
“Our growth and the launch of new technology products, such as our digital asset portfolio and the future NFT marketplace, demonstrate that we are in fact beginning to transform ourselves,” GameStop CEO Matt Furlong told analysts and commentators. investors on a conference call.
“In the quarters and years ahead, we will continue to embrace change, putting the customer first and focusing on long-term shareholder value.”
Furlong gave no indication of future earnings on the call.
GameStop said it is continuing with plans to enable transactions on its own NFT (non-fungible token) market after launching its own wallet for cryptocurrencies and NFTs last month.
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Non-fungible tokens are unique, non-negotiable receipts of ownership for digital assets that are tracked on a specific blockchain to prove their authenticity. They can take the form of a static image, a video clip or an animated 3D image.
Earlier this year, GameStop’s stock skyrocketed and entered into a partnership with a cryptocurrency developer on non-fungible tokens.
“Immutable X will also become a Layer 2 partner and platform for GameStop and the company’s NFT Marketplace which is expected to launch later this year,” GameStop said in a statement. Press release at the time.
Further details are also expected for a stock split, first announced in March in a regulatory filing.
Last year, GameStop was the subject of intense social media discussion and a commercial frenzy.
The company has since revamped its roster of executives to diversify and return to profitability, appointing two former Amazon.com (AMZN) executives as CEO and CFO respectively.