GameStop reports $158 million loss and decline in hardware sales
- GameStop reported its fiscal first-quarter earnings after the bell on Wednesday.
- GameStop has said it plans to launch a non-fungible token (NFT) marketplace by the end of the second quarter.
GameStop reported $1.38 billion in revenue in its fiscal first-quarter earnings report Wednesday, up slightly from the $1.27 billion it reported in the year-ago quarter.
But, it also reported a $157.9 million net loss, which is worse than the $66 million net loss in the year-ago quarter.
Shares fluctuated between slightly positive and slightly negative in after-hours trading.
Here are the key numbers:
- Loss per share: $2.08, not comparable to estimates
- Revenue: $1.38 billion
GameStop generated $673.8 million in sales of hardware like game consoles and accessories, which amounted to 48.9% of all sales. That was down from $703.5 million in the year-ago quarter. It made $483.7 million on software, up from $397.9 million in the year-ago quarter, and $220.9 million on collectibles, up from $175.4 million in Q1 2021.
The company's strength in collectibles this quarter compared to the previous year's quarter may indicate why it's leaning into non-fungible tokens (NFTs), which have become a new type of digital souvenir that users can collect and resell. NFTs are digital items or artwork that are tied to the blockchain so the original version can be authenticated.
The company has said it plans to launch an NFT marketplace by the end of the current quarter and it reiterated in Wednesday's release its expected timeline. GameStop said it's taken steps to support the recent launch of a digital asset wallet that will allow users to send a receive the tokens.
The company has not provided a financial outlook since the start of the pandemic. CEO Matt Furlong said in March that GameStop doesn't "feel it's prudent to provide guidance during the early stages of our transformation and with the current global backdrop."
On the company's earnings call Wednesday, Furlong still did not provide guidance and did not take analyst questions. He said the company continues to focus on embracing change and "long-term stockholder value" through investing in commerce and seeking growth opportunities in NFTs and other emerging technologies.
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