Text size

GameStop reported a wider net loss than expected in the July quarter.

Michael M. Santiago/Getty Images


stock was falling in extended trading Wednesday after the company reported a wider net loss than expected for the July quarter.

The videogame-retailer-turned-meme-sensation (ticker: GME) reported an adjusted net loss of 76 cents a share and net sales of $1.18 billion. The consensus among the remaining four analysts still providing estimates to FactSet called for an adjusted net loss of 67 cents a share and sales of $1.12 billion.


stock was down 8.2% to $182.50 in after-hours trading—though that could change dramatically on Thursday if the usual meme stock factors like options volume, short seller activity, and online chatter influence where the stock trades. The stock fell sharply the day following its past two reports before rebounding.

The stock fell further after the company’s earnings call lasted only eight minutes and included no questions from analysts. New CEO Matt Furlong introduced himself, thanked employees, and touted the retailer’s new board of directors and management team. He mostly read updates from the company’s earnings release, and declined to provide a formal outlook.

“We now have unified leadership fully focused on two long-term goals: delighting customers and delivering value for stockholders,” Furlong said on the call, echoing remarks from Chairman Ryan Cohen in June. “In addition to focusing on long-term opportunities, we took a number of steps over the past quarter to fortify the company’s infrastructure and technology. We are focused on positioning GameStop to scale while obsessing over competitive pricing, expansive selection and fast shipping.”

Of the company’s sales, $609.6 million came from hardware and accessories, while $396.6 million came from new and pre-owned videogame software. Another $177.2 million came from collectibles.

The company ended the quarter with $1.78 billion in cash and restricted cash. It added that it invested in long-term growth initiatives like hiring, expanding the company’s product catalog, and enhancing its fulfillment network capabilities and technology. The company also said it started building out its U.S.-based customer care operations, which includes a center in Pembroke Pines, Florida.

The earnings release did not include a full-year outlook, nor did it mention transformation targets which have been repeatedly requested by analysts looking for reasons to justify the stock’s surging valuation—aside from cash raised through stock sales.

The initial release also didn’t mention GameStop’s ambitions in the world of non-fungible tokens, or NFTs. John Patrick Lee, an exchange-traded fund product manager at VanEck, notes the company launched an NFT website in May, prompting online chatter.

“If Gamestop is able carve out a role within the fast-growing NFT space, it could potentially mark the start of a new business line that could provide long-term support for the company outside of its traditional brick and mortar retail operations,” Lee says.

Write to Connor Smith at [email protected]


Please enter your comment!
Please enter your name here