Tue, Jun 11, 8:55 PM (88 days ago)
GameStop Corp.'s Q1 2024 financial report indicates a challenging quarter with a 28.7% decline in net sales to $881.8 million compared to Q1 2023. The decrease was driven by a 29.1% drop in new software sales, a 30.4% reduction in hardware and accessories sales, and a 20.9% decline in collectibles sales. Gross profit decreased by 14.9% to $244.5 million, though the gross margin improved to 27.7% from 23.2% due to reduced freight expenses. SG&A expenses fell by 14.6% to $295.1 million, reflecting cost-cutting measures. The net loss improved to $32.3 million from $50.5 million in Q1 2023. Cash flow from operations was a negative $109.8 million, and the company ended the quarter with $999.9 million in cash and equivalents. GameStop's strategic focus includes improving omnichannel retail, achieving profitability, and leveraging brand equity. The company also raised $3.07 billion through an "at-the-market" equity offering to bolster liquidity.