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GameStop (GME) Q4 2022 Earnings

The GameStop store opens March 16, 2023 in a strip mall in Chicago, Illinois.

Scott Olson | Getty Images

game stop It posted its first quarterly profit in two years on Tuesday, ending the year on a high note after dealing with lower sales, inventory issues and cash flow pressure.

The company’s shares rose about 40% in after-hours trading.

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Net sales declined slightly to $2.23 billion in the quarter ended January 28 Starting at $2.25 billion In the fourth quarter of last year, the video game retailer also posted a profit of $48.2 million (16 cents per share) compared with a loss of $147.5 million (49 cents).

GameStop has not provided financial guidance and has not provided guidance since the early days of the pandemic. There are too few analysts covering the company to compare its results with Wall Street estimates.

The retailer is striving to restore profitability and got there by cutting costs. Selling, general and administrative expenses were $453.4 million (20.4% of sales), compared with his $538.9 million (23.9% of sales) in the same period last year.

GameStop used to ride short-term memetic stock momentum, but has since leveled off as the company has right-sized its business by cleaning out inventory levels and rebuilding its cost structure. rice field.

The stock closed at about $18 on Tuesday, down dramatically from a 52-week high of nearly $50 nearly a year ago.

GameStop’s turnaround plans have been reinvigorated by a management change for 2021, with CEO Matt Furlong Amazon Veteran, at the helm, adding Ryan Cohen, crunchy founder and original Bed Bath & Beyond Activist investor, chairman of the board.The company also lay off staff Replaced chief financial officer.

The company has been working Renewal of real estate portfolio As the video game industry heads in that direction, it will become more online.

For the full year, GameStop posted revenue of $5.93 billion, down slightly from $6.01 billion in 2021, as revenue from the collectibles category, which retailers bank on, increased and the company brought long-term growth to

Like many retailers, GameStop has gained experience supply chain delays A backlog of inventory remained after previously trying to meet high demand. The company still has $682.9 million in inventory, down from $915 million a year ago, according to its fourth-quarter balance sheet.

As part of its comeback strategy, GameStop is also working to improve its cash balance. Cash and cash equivalents for the quarter were $1.39 billion.

While managing the burden of brick-and-mortar stores, the company has also worked to find a digital identity.

In September unfortunate partnership The bankruptcy cryptocurrency exchange FTX. The two companies planned to work together on e-commerce marketing, with GameStop planning to sell his FTX gift cards in stores. Two months later, GameStop murmured “Shrink” that partnership and refund anyone who purchased an FTX gift card in store.

The company also NFT Marketplace From July.The launch took place in chat “Crypto Winter” That’s because cryptocurrencies have undergone a broad cooldown from their 2021 rally. The market saw an initial surge in volume, but then plateaued, which may not be the ticket to the stable digital presence the company hoped for.

Read GameStop Financial results announcement.



Summarize this content to 100 words The GameStop store opens March 16, 2023 in a strip mall in Chicago, Illinois.Scott Olson | Getty Imagesgame stop It posted its first quarterly profit in two years on Tuesday, ending the year on a high note after dealing with lower sales, inventory issues and cash flow pressure.The company’s shares rose about 40% in after-hours trading.Related investment newsNet sales declined slightly to $2.23 billion in the quarter ended January 28 Starting at $2.25 billion In the fourth quarter of last year, the video game retailer also posted a profit of $48.2 million (16 cents per share) compared with a loss of $147.5 million (49 cents).GameStop has not provided financial guidance and has not provided guidance since the early days of the pandemic. There are too few analysts covering the company to compare its results with Wall Street estimates.The retailer is striving to restore profitability and got there by cutting costs. Selling, general and administrative expenses were $453.4 million (20.4% of sales), compared with his $538.9 million (23.9% of sales) in the same period last year.GameStop used to ride short-term memetic stock momentum, but has since leveled off as the company has right-sized its business by cleaning out inventory levels and rebuilding its cost structure. rice field.The stock closed at about $18 on Tuesday, down dramatically from a 52-week high of nearly $50 nearly a year ago.GameStop’s turnaround plans have been reinvigorated by a management change for 2021, with CEO Matt Furlong Amazon Veteran, at the helm, adding Ryan Cohen, crunchy founder and original Bed Bath & Beyond Activist investor, chairman of the board.The company also lay off staff Replaced chief financial officer.The company has been working Renewal of real estate portfolio As the video game industry heads in that direction, it will become more online.For the full year, GameStop posted revenue of $5.93 billion, down slightly from $6.01 billion in 2021, as revenue from the collectibles category, which retailers bank on, increased and the company brought long-term growth toLike many retailers, GameStop has gained experience supply chain delays A backlog of inventory remained after previously trying to meet high demand. The company still has $682.9 million in inventory, down from $915 million a year ago, according to its fourth-quarter balance sheet.As part of its comeback strategy, GameStop is also working to improve its cash balance. Cash and cash equivalents for the quarter were $1.39 billion.While managing the burden of brick-and-mortar stores, the company has also worked to find a digital identity.In September unfortunate partnership The bankruptcy cryptocurrency exchange FTX. The two companies planned to work together on e-commerce marketing, with GameStop planning to sell his FTX gift cards in stores. Two months later, GameStop murmured “Shrink” that partnership and refund anyone who purchased an FTX gift card in store.The company also NFT Marketplace From July.The launch took place in chat “Crypto Winter” That’s because cryptocurrencies have undergone a broad cooldown from their 2021 rally. The market saw an initial surge in volume, but then plateaued, which may not be the ticket to the stable digital presence the company hoped for.Read GameStop Financial results announcement.
https://www.cnbc.com/2023/03/21/gamestop-gme-q4-2022-earnings.html GameStop (GME) Q4 2022 Earnings

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