GameStop Net Loss Narrows to $32.3 Million on Revenue Decline of 28.7% in Q1 2024
SEC Track
26 Oct 2024
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 million57.3%Sales decreased by $220.5 million or 30.4% year-over-year.$239.7 million27.2%Sales decreased by $98.6 million or 29.1% year-over-year.$136.8 million15.5%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 millionIncludes $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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