Over the past year, GameStop stock has been declining, dropping over 56% in the last twelve months.
Shares of GameStop (NYSE: GME) declined 8% in after-hours trading after the world’s largest video game retailer recorded a loss in its fourth-quarter (Q4) financial result. On the 17th of March, the company announced its Q4 and fiscal year 2021 results where it mentioned the unforeseen loss. Additionally, GameStop did not state the financial outlook for the current year.
GameStop Releases Q4 Performance
During the Q4 that ended on the 29th of January, GameStop recorded a net loss of $147.5 million or $1.94 per share. Also, the adjusted loss per share for Q4 was $1.86. This is compared to the $80.5 million profit recorded in the previous year. Generated net sales for the quarter was $2.24 billion, compared to the $2.122 billion seen in 2020 Q4 and the $2.194 of 2019 Q4.
Despite the loss, the company is exploring more ways of generating revenue through partnerships with gaming brands. GameStop CEO Matt Furlong said the retailer is making itself a “customer-obsessed technology company. Speaking further during the earnings call, Furlong noted:
“It is important to stress [that] GameStop had to become such a cyclical business and so capital starved that we have had to rebuild it from within. We’ve also had to change the way we assess revenue opportunities by starting to embrace, rather than run from, the new frontiers of gaming.”
GameStop gained more popularity during the meme stock buzz. Over time, there have been a lot of changes with the company, including the effort to transform it into an e-commerce giant. Ryan Cohen, the co-founder of Chewy, came onboard as the chairman, and he employed Furlong as the CEO. Cohen also hired Mike Recupero to become the chief financial officer (CFO). Under Furlong’s administration as the chairman of GameStop, the company has partnered with PC gaming brands. The chairman made significant efforts with its digital goals, sealing deals with the likes of Lenovo (OTC: LNVGY), Alienware, and Corsair. Additionally, Furlong revealed that GameStop’s PowerUp Rewards Pro now boasts of around 5.8 million members, growing 32% year-on-year.
GameStop’s Achievement in Last Quarter
It is safe to say that GameStop achieved a lot in Q4. The retailer rolled out a redesigned app last quarter with enhanced functionalities and user interface. It also employed employees who are familiar with the blockchain space, technology, e-commerce, and so on. Furthermore, GameStop has collaborated with Immutable X as it plans to launch an NFT Marketplace towards the end of Q2. In support, Immutable X will donate up to $150 million in IMX tokens towards the actualization of the NFT marketplace.
Currently, GME is down 6.68% to $81.84 at pre-market trading. Over the past year, GameStop stock has been declining, dropping over 56% in the last twelve months. The company has also lost nearly 50% since the year started.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
Ecosystem
Research
News Network
About