GameStop loses another 100 million
The GameStop store chain has been in a series of storms several times lately. The last concerned an issue relating to a series of NFTs, and in addition to these not too happy situations, it seems that the situation of the company is not the most optimistic. In the latest earnings report we find that the company faced another difficult quarter given yet another loss recorded.
Gamestop
GameStop is currently focusing a lot on the sale of the categories of collectible gadgets and this segment of its business has registered year-on-year growth, going from 177.2 million to 223.2 million dollars for the second fiscal quarter of this year. In this turbulent situation, company CEO Matt Furlong said better times would come, as GameStop is expected to have a thicker supply than current generation consoles.
We all know very well how difficult the situation still is. stocks of PS5 and Xbox Series X, but according to the words of the CEO of GameStop it seems that a greater number of stocks of consoles will lift the situation of the company. What is certain is that the chain of stores is struggling to find a square, and this could also be happening to the approach of players increasingly towards purchasing digital content in favor of physical ones.
GameStop Loses $100 Million, Says New-Gen Console Stock Should Improve Soon
Retailer GameStop has</a> released its latest earnings report, and the company had another tough quarter. For the company's fiscal second quarter (May-July), GameStop posted an overall loss of $108.7 million, which is worse than the $61.6 million loss that GameStop had in the same period last year.
Net sales, or total revenue, also declined. It fell from $1.183 billion during fiscal Q2 of last year to $1.136 billion this latest quarter. GameStop is focusing a lot on its Collectibles category, and this segment of its business posted year-over-year growth, rising from $177.2 million to $223.2 million for this year's fiscal Q2.
Additionally, GameStop said it was able to cut some 'selling, general, and administrative' costs as part of its efforts to 'right-size' the business. GameStop recently fired its CFO and enacted a round of layoffs, including at Game Informer.
For the end of fiscal Q2, GameStop had more than $900 million in cash and cash equivalents on hand, the company said.
In an earnings call, CEO Matt Furlong said brighter times may be ahead, as he mentioned that GameStop should have a 'stronger supply' of the very in-demand current-generation consoles in the months ahead.
Furlong said GameStop might not be posting revenue and profit gains right now, but he believes GameStop is in a 'much stronger' financial position now than it was 18 months ago. He said GameStop's plan to turn things around--which includes pushing into the crypto/NFT space--carries risk and takes time, but it's a path forward he believes in.
'We are working to accomplish something unprecedented in our industry: transform a legacy brick-and-mortar retailer into a technology-led organization that meets customers' needs through stores, e-commerce properties, and both digital marketplaces and new online communities,' Furlong said.
Also during the call, Furlong confirmed that GameStop is offering hourly workers higher pay and giving equity grants of $21,000 to store leaders in the US to help improve retention among its workforce.
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