Core Highlights: - Net sales decreased by $355.3 million or 28.7% year-over-year, driven by declines across all product categories and geographic segments. - Gross profit decreased by $42.8 million or 14.9%, but gross margin increased by 4.5 percentage points to 27.7%, benefiting from cost optimizations. - SG&A expenses decreased by $50.6 million or 14.6%, but as a percentage of sales increased to 33.5% from cost reduction efforts. - Operating loss was $50.6 million compared to $58.4 million in the prior year period, an improvement of $7.8 million or 13.4%. - Interest income increased by $5.2 million or 53.6% due to higher returns on invested cash and marketable securities.
Revenue Breakdown: $505.3 million 57.3% Sales decreased by $220.5 million or 30.4% year-over-year. $239.7 million 27.2% Sales decreased by $98.6 million or 29.1% year-over-year. $136.8 million 15.5% Sales decreased by $36.2 million or 20.9% year-over-year.
Management Outlook: - Management is focused on optimizing the core business to achieve profitability through omnichannel retail excellence, cost containment, and leveraging the GameStop brand. - Approved a new investment policy in December 2023 and revised it in March 2024 to have an Investment Committee oversee the company's investments. - Completed an at-the-market equity offering in May-June 2024, raising approximately $3.07 billion in gross proceeds for general corporate purposes including acquisitions and investments.
Operating Data: Outflow of $109.8 million, compared to $102.7 million outflow in the prior year period $999.9 million as of May 4, 2024 $10.8 million $14.9 million

Includes $25.7 million of government-guaranteed French term loans

Operational Risks: The company disclosed no new risk factors in the quarter.

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