GameStop reports wider loss, announces partnership with crypto exchange FTX
GameStop said Wednesday that quarterly sales declined and losses widened, as its inventory of video game equipment and more swelled.
The company also disclosed a new partnership with crypto exchange FTX.
Shares of the company rose more than 10% in after hours trading.
Here’s how the company did for the second fiscal quarter ended July 30:
Loss: $108.7 million, not comparable to estimatesRevenue: $1.14 billion
GameStop’s results cannot be compared with estimates because too few analysts cover the company.
The company did not provide an outlook. It hasn’t provided guidance since the start of the pandemic.
The legacy brick-and-mortar video game retailer is trying to adapt its business to a digital world. It’s gotten new leadership, including board chair Ryan Cohen, the founder of Chewy and former activist investor for Bed Bath & Beyond, and its CEO Matt Furlong, an Amazon veteran.
But GameStop has struggled to drive profits, leading it to trim costs and shake up leadership. Last month, the company fired its chief financial officer, Mike Recupero, and laid off employees across departments. Accounting chief Diana Jajeh stepped in as the company’s new CFO.
It has looked to new ways to make money, including nonfungible tokens. It launched an NFT marketplace in July, which is open to the public for beta testing. It allows users to connect their own digital asset wallets, including the recently launched GameStop Wallet, so they can buy, sell and trade NFTs for virtual goods.
GameStop, which became a meme stock, has seen sharp fluctuations in its share value. Over the past year, shares have swung from $19.39 to $63.92. The company’s stock is down about 36% so far this year, bringing the company’s value to $7.31 billion.
This is a developing story. Check back for updates.