GameStop’s quarterly revenue beats estimates on increased demand for video games

People walk past a GameStop in Manhattan, New York, U.S., December 7, 2021. REUTERS/Andrew Kelly

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June 1 (Reuters) – GameStop Corp (GME.N) reported first-quarter revenue on Wednesday that beat market expectations as the video game retailer pivots to a more web-focused model amid… growing competition from major retailers such as Walmart Inc (WMT.N) and Amazon.com Inc (AMZN.O).

Store closures during the COVID-19 pandemic have affected GameStop’s brick-and-mortar retail business, for which it is primarily known. The company has bolstered its online sales capabilities as shopping trends toward e-commerce have accelerated during the pandemic.

The company’s shares soared 687% last year as it was at the center of a battle between retail investors coordinating on online forums and Wall Street hedge funds that had taken short positions. on GameStop, in what is called a “short-squeeze”.

Net sales were $1.38 billion in the quarter ended April 30, above analysts’ average estimate of $1.32 billion, according to Refinitiv data.

Net loss widened to $157.9 million, or $2.08 per share, for the first quarter from $66.8 million, or $1.01 per share, a year earlier.

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Reporting by Akash Sriram in Bangalore; Editing by Krishna Chandra Eluri

Our standards: The Thomson Reuters Trust Principles.

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