GameStop Loses $100 Million In Past 3 Months
GameStop's revenue, however, climbed to $1.297 billion and the company has more than $1.4 billion in cash in its reserves.
GameStop has released its latest earnings report, and it was a mixed bag. Total revenue was $1.297 billion, which is up from $1.005 billion during the same period last year. However, GameStop posted an overall net loss of $105.4 million, which compares to a loss of $18.8 million last year.
On an earnings call, management said, "As indicated in the past, long-term revenue growth is the primary metric by which we believe stockholders should assess our execution."
GameStop ended the quarter with cash and cash equivalents of $1.413 billion, which is up significantly from the end of the same quarter last year. GameStop added that inventory was $1.141 billion, compared to $861 million last year, which is up due to GameStop's "front-loading investments" to its inventory to meet demand and alleviate the impact of supply chain problems.
Also of note, GameStop said it opened new offices in Seattle and Boston, two major technology hubs in North America, and that this should help encourage talent to join the company.
GameStop made most of its money in the latest quarter from hardware and accessories, which brought in $669.9 million, or 51.7% of total revenue. Software sales made up $434.5 million, while collectibles brought in $192.2 million. Only software sales slid year-over-year for GameStop.
For more, check out GameStop's full earnings release.
GameStop was trading at below $5 per share at the start of the year before a short-squeeze driven in part by Reddit investors helped push the stock price above $300, making some people incredibly rich. The stock price has since come back down to around $170 per share, which is still a massive improvement over where it was. Billionaire Ryan Cohen, who founded the pet food company Chewy, is now the chairman of GameStop.
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