GameStop narrows quarterly losses, keeps inventories higher to sidestep supply-chain snags

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The shares of GameStop Corp. they rose slightly during Wednesday’s extended session after the specialist retailer reported lower-than-expected quarterly losses and said it kept inventories higher to avoid supply chain problems.

GameStop GME,
-2.68%
it said it lost $ 158 million, or $ 2.08 per share, in the first quarter, compared to a loss of $ 67 million, or $ 1.01 per share, last quarter.

Sales rose to $ 1.38 billion during the quarter, compared to $ 1.38 billion a year ago, GameStop said.

The consensus of FactSet, obtained by three analysts, including Wedbush and Jefferies, called for a $ 2.49-per-share GAAP loss on $ 1.3 billion in sales for the video game and electronics retailer.

The video game retailer has been one of the most recognizable names in the so-called “meme stocks”.

GameStop said its inventories reached $ 918 million at the end of the quarter, up from $ 571 million at the close of the first quarter of 2021, as the company competed to improve its “stock levels” to meet ‘increased customer demand and offset headwinds’. . ”

GameStop said it ended the quarter with $ 1.035 billion in cash and cash equivalents.

The company launched a portfolio for cryptocurrencies and non-consumable tokens last month, and on Wednesday said it is moving forward with plans to have a portfolio extension to allow transactions in the GameStop NFT market, as previously announced. during the second trimester.

GameStop shares rose 1.3% in off-hours operations, after ending the regular day with a 2.7% drop, and have fallen 18% so far this year. This compares to a 14% loss this year for the S&P 500 SPX,
-0.75%.



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