Video game retailer GameStop Corp GME reported first-quarter financial results after market close Wednesday. Here are the key highlights.
What Happened: GameStop reported first-quarter net sales of $1.378 billion, up 7.9% year-over-year. The net sales figure came in ahead of Street estimates of $1.32 billion, according to data from Benzinga Pro.
Earnings in the first quarter were a loss of $2.08 per share, missing a consensus estimate of a loss of $1.45 per share.
The company credits new and expanded brand relationships as a contributor to net sales in the first quarter.
The company ended the quarter with inventory of $917.6 million, up from $570.9 million at the end of the first quarter in the prior year. The increase was due to meeting increased customer demand and staying ahead of supply chain headwinds, according to the company.
GameStop ended the first quarter with $1.04 billion in cash and no debut, other than a low-interest term loan.
What’s Next: The company highlighted the recent launch of its digital asset wallet and its push into the non-fungible token space.
“The wallet extension will enable transactions on GameStop’s NFT marketplace upon its intended launch in the second quarter,” the company said.
The company said it's continuing to hire for the blockchain gaming sector.
GME Price Action: GameStop shares closed down 4% at $119.56 and were up 8% to $128.98 in after-hours trading at the time of writing.
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