GameStop Shares Fall Over 7% After Reporting Earnings

Despite posting a narrower loss than last year, shares of GameStop were falling more than 7% in extended trading on Wednesday.

The company also reported a rise in sales during the quarter but it wasn’t enough for Wall Street.

Wall Street may have been spooked to learn that the SEC requested additional documents from GameStop in the agency’s investigation of trading activity in GameStop and other companies.

The company had disclosed this in May and said that the inquiry is not expected to negatively impact the company.

The retailer did not provide an outlook for the coming quarters or take questions during its earnings conference call. This earnings call was the first call since CEO Matthew Furlong and CFO Mike Recupero joined GameStop’s leadership.

The Meme craze has pushed Game Stop’s value of its stock up 957% year to date.

For the quarter ended July 31, Game Stop reported a net loss of $61.6 million, or 85 cents per share. In the year-earlier period, the company had reported a loss of $111.3 million, or $1.71 per share. On an adjusted basis, GameStop lost 76 cents per share. Sales rose to $1.18 billion from $942 million a year earlier.

Per Refinitiv, analysts were expecting the company to lose 67 cents a share on revenue of $1.12 billion.

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