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, with declines across all segments. Hardware and accessories sales fell 30.4% to $505.3 million, while software sales dropped 29.1% to $239.7 million. The company's net loss narrowed to $32.3 million from $50.5 million year-over-year.Gross profit margin improved to 27.7% from 23.2%, despite gross profit declining 14.9% to $244.5 million. The company reduced selling, general and administrative expenses by 14.6% to $295.1 million through cost optimization efforts, including lower labor and consulting costs. Interest income increased to $14.9 million from $9.7 million due to higher returns on investments.The company maintained a strong liquidity position with $999.9 million in cash and $83 million in marketable securities as of May 4, 2024. GameStop completed two at-the-market equity offerings in May and June 2024, raising approximately $3.07 billion in gross proceeds. The company plans to use the proceeds for general corporate purposes, including potential acquisitions and investments under its new investment policy.
