GameStop (NYSE: GME) released its First Quarter Fiscal Year 2022 results after the market closed on Wednesday. The company posted wider Q1 loss, but beat WallStreet estimates.
Revenue: $1.38 billion vs $1.32 billion expected
EPS: -$2.08 vs -$1.45 expected
GME generated $673.8 million in sales of hardware like game consoles and accessories, which amounted to 48.9% of all sales. That was down from $703.5 million in the year-ago quarter. It made $483.7 million on software, down from $397.9 in the year-ago quarter, and $220.9 million on collectibles, up from $175.4 million in Q1 2021.
FIRST QUARTER OVERVIEW
- Net sales were $1.378 billion for the quarter, compared to $1.277 billion in the prior year’s first quarter.
- Sales attributable to new and expanded brand relationships contributed to the Company’s growth in the quarter.
- Inventory was $917.6 million at the close of the quarter, compared to $570.9 million at the close of the prior year’s first quarter, reflecting a continued focus on improving in-stock levels in merchandise to meet increased customer demand and offset supply chain headwinds.
- Ended the period with cash and cash equivalents of $1.035 billion as well as no debt other than a low-interest, unsecured term loan associated with the French government’s response to COVID-19.
- Took steps to support the recent launch of a digital asset wallet to allow gamers and others to store, send, receive and use cryptocurrencies and non-fungible tokens (“NFTs”) across decentralized apps. The wallet extension will enable transactions on GameStop’s NFT marketplace upon its intended launch in the second quarter.
- Continued hiring individuals with experience in areas such as blockchain gaming, ecommerce and technology, and operations, including a new Chief Operating Officer with a background in retail and stores.