Tue, Sep 10, 8:31 PM (101 days ago)
For the fiscal quarter ending August 3, 2024, GameStop Corp. reported a net sales decline of 31.4% to $798.3 million compared to the same period last year, driven by significant decreases in software (down 47.7%) and hardware/accessories sales (down 24.4%). Gross profit decreased by 18.7%, but as a percentage of sales, it improved to 31.2% due to better inventory management. Selling, general and administrative (SG&A) expenses also decreased by 16.0%, yet increased as a percentage of sales to 33.9%, reflecting ongoing cost containment efforts and prior year legal settlements. The company reported a net income of $14.8 million, a significant improvement from a loss of $2.8 million in the previous year. Cash flow from operations improved to a net outflow of $41.2 million, a substantial recovery from $211.8 million outflow in the prior period. GameStop ended the quarter with $4.2 billion in cash and cash equivalents, bolstered by $3.1 billion raised from an at-the-market equity offering. Future operations will focus on optimizing store performance and cost structure while navigating the uncertainties in the retail environment.