South Florida Sun-Sentinel (Sunday)
GameStop says it lost $215M in 12 months
GameStop, the video game retailer at the center of a social-media driven investment frenzy, said it lost $215 million in the 12 months ended Jan. 30 as it dealt with pandemic-related shutdowns and moved to transform itself into a more online-focused company.
The company’s latest results, which fell short of Wall Street’s expectations, offered few positives to back up some investors’ belief that the struggling retailer is on track to turn its business around and perhaps justify its stock’s stunning run from around $20 a share at the start of the year to north of
$480 by the end of January. GameStop touted that global e-commerce sales made up 34% of net sales in the fourth quarter compared with 12% in the year-ago quarter. It also noted a 6.5% gain in sales at stores open at least a year, a key retail industry metric.
But there was less encouraging news as well: GameStop announced it would suspend earnings guidance as it focuses on its bid to bring more of its business online. And, in a break with the Wall Street norm, CEO George Sherman didn’t take questions from analysts during a post-earnings release call Tuesday. Sherman did not address the recent volatility in the company’s shares in his remarks.
The Grapevine, Texas, company reported net income of $80.5 million, or
$1.19 per share, for the three months ended Jan. 30. That compares with net income of $21 million, or 32 cents per share, a year earlier.
Revenue fell to $2.12 billion, from $2.19 billion. Analysts were expecting adjusted earnings of $1.35 per share on $2.21 billion in revenue, according to FactSet. For the full fiscal year, revenue dropped to
$5.09 billion from $6.47 billion in the prior year.