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Business

GameStop quarterly revenue estimates higher demand for video games




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

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June 1 (Reuters) – GameStop Corp (GME.N) reported first-quarter revenue that exceeded market expectations on Wednesday as the video game retailer swings toward a more online-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 affected GameStop’s physical retail, for which it is primarily known. The company has strengthened its online sales opportunities as shopping trends towards e-commerce accelerated during the pandemic.

The company’s shares rose 687% last year when it was at the center of a battle between retail investors who coordinated online forums and Wall Street hedge funds that had taken short positions in 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 losses increased 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 of Akash Sriram in Bengaluru; Editing Krishna Chandra Eluri

Our standards: Thomson Reuters Trust Principles.



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