GameStop Corp. reported a significant decrease in net sales and a reduced operating loss for the quarter ended May 4, 2024. Net sales fell by 28.7% to $881.8 million from $1,237.1 million in the same period last year. The operating loss improved slightly to $50.6 million from $58.4 million. The company saw a decrease across all geographic segments, with the United States, Canada, Australia, and Europe experiencing sales declines of 25.8%, 32.1%, 31.0%, and 37.2%, respectively. Gross profit also declined by 14.9% to $244.5 million, but gross profit as a percentage of net sales increased to 27.7% from 23.2% in the prior year. Selling, general and administrative expenses decreased by 14.6% to $295.1 million, reflecting the company's cost reduction efforts. Net interest income rose to $14.9 million due to higher returns on invested cash and securities. The...Show More

GameStop Corp. reported a significant decrease in net sales and a reduced operating loss for the quarter ended May 4, 2024. Net sales fell by 28.7% to $881.8 million from $1,237.1 million in the same period last year. The operating loss improved slightly to $50.6 million from $58.4 million. The company saw a decrease across all geographic segments, with the United States, Canada, Australia, and Europe experiencing sales declines of 25.8%, 32.1%, 31.0%, and 37.2%, respectively. Gross profit also declined by 14.9% to $244.5 million, but gross profit as a percentage of net sales increased to 27.7% from 23.2% in the prior year. Selling, general and administrative expenses decreased by 14.6% to $295.1 million, reflecting the company's cost reduction efforts. Net interest income rose to $14.9 million due to higher returns on invested cash and securities. The company recognized an income tax benefit of $3.4 million, a significant increase from the $0.1 million in the previous year. GameStop's liquidity remains strong with $999.9 million in cash and cash equivalents and $83.0 million in marketable securities. The company has also adjusted its credit facilities, reducing its revolving line of credit from $500 million to $250 million. GameStop continues to focus on its strategic plan, aiming for omnichannel retail excellence and profitability, leveraging its brand equity, and optimizing its cost structure. The company has exited operations in Ireland, Switzerland, and Austria as part of its cost containment efforts. GameStop has also implemented a new investment policy, with an Investment Committee overseeing the company's investment activities.