Summary by Moomoo AI
GameStop reported Q1 fiscal 2024 net sales of $881.8 million, down 28.7% from $1.24 billion in the prior year period. The decline was primarily driven by a 30.4% drop in hardware and accessories sales to $505.3 million, while software sales fell 29.1% to $239.7 million. Net loss narrowed to $32.3 million from $50.5 million year-over-year, with loss per share improving to $0.11 from $0.17.Gross profit margin expanded to 27.7% from 23.2% last year, despite gross profit declining 14.9% to $244.5 million. The company achieved $50.6 million in selling, general and administrative expense reductions through continued cost optimization efforts, primarily in labor, consulting and marketing costs. Operating loss improved to $50.6 million from $58.4 million in the prior year.The company maintained a strong liquidity position with $999.9 million in cash and $83.0 million in marketable securities as of May 4, 2024. In May and June 2024, GameStop completed an at-the-market equity offering, raising approximately $3.07 billion in gross proceeds through the sale of 120 million shares. The company plans to use proceeds for general corporate purposes including potential acquisitions and investments.
