GameStop Sales Rose, but Loss Widened

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GameStop Sales Rose, but Loss Widened
02 Jun 2022
6 min read

News Synopsis

GameStop Corp's sales increased as more people returned to stores in the previous quarter, but losses increased, weakening investors' expectations of signs of a turnaround for video game retailers.

Based in Grapevine, Texas, the company reported Wednesday that net sales for the quarter ending April 30 increased from $1.28 billion in the previous year to $1.38 billion. On an adjusted basis, retailers reported a loss of $2.08 per share, compared to a loss of 45 cents per share during the same period last year. Three analysts surveyed by FactSet expected net sales of $1.32 billion and adjusted losses of $1.45 per share.

Last year, GameStop was at the center of a month-long social media-fueled transaction frenzy. The company has reviewed its leadership to help diversify its business and restore profitability, but so far it hasn't been as dramatic as the rise in stock prices earlier last year.

Video game retailers make a profit as many gamers are looking at GameStop to download and stream games over the Internet rather than buying specialized hard copies for sale. I'm having a hard time. In addition, publishers are releasing more free games that generate revenue from selling virtual products.

TWN In-Focus