GameStop Reports Q1 Earnings Revealing a $158M Loss

Video game retailer GameStop reported its fiscal first-quarter earnings after the bell on Wednesday.

The company reported $1.38 billion in revenue which was up slightly from the $1.27 billion it reported in the year-ago quarter.

GameStop also reported a $157.9 million net loss, which is worse than the $66 million net loss in the year-ago quarter.

For the quarter, earnings per share came in at $2.08 which was not comparable ot estimates. Revenue was $1.38 billion.

GameStop generated $673.8 million in sales of hardware like game consoles and accessories, which amounted to 48.9% of all sales.

This was a drop from $703.5 million in the year-ago quarter. It made $483.7 million on software, up from $397.9 million in the year-ago quarter, and $220.9 million on collectibles, up from $175.4 million in Q1 2021.

The company also said it plans to launch a non-fungible token (NFT) marketplace by the end of the second quarter.

Wedbush analyst Michael Pachter called Gamestop’s NFT marketplace announcement “nonsense”, saying it will “have no NFTs for sale and no customers, and wallets they are providing will be empty.”

Shares fluctuated between slightly positive and slightly negative in after-hours trading.

Shares soared 687% last year in one of the most infamous short squeezes Wall Street has seen.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.