GME

GameStop Q1 2024 – Net Sales Down by 29%

GameStop Corp. has released its preliminary unaudited financial information for the first quarter ended May 4, 2024, and the numbers tell an interesting story. Net sales for the 13-week period are expected to be in the range of $0.872 billion to $0.892 billion, representing a significant decrease from the $1.237 billion reported in the prior year fiscal quarter. This indicates a substantial decline in net sales compared to the same period last year.

Moving on to selling, general and administrative (SG&A) expenses, GameStop anticipates these to be in the range of $290 million to $300 million. This represents a notable decrease from the $345.7 million reported in the prior year fiscal quarter. The decrease in SG&A expenses suggests that the company has been able to control and reduce these costs compared to the same period last year.

In terms of net loss, GameStop expects it to be in the range of $27 million to $37 million, a significant improvement from the net loss of $50.5 million reported in the prior year fiscal quarter. This indicates a substantial reduction in net loss compared to the same period last year, reflecting positive changes in the company's financial performance.

Lastly, GameStop's cash, cash equivalents, and marketable securities are expected to be in the range of $1.073 billion to $1.093 billion, down from $1.310 billion at the close of the prior year fiscal quarter. This decrease in cash, cash equivalents, and marketable securities suggests a change in the company's liquidity position compared to the same period last year.

As a result of these announcements, the company's shares have moved -26.2% on the market, and are now trading at a price of $20.43. For the full picture, make sure to review GameStop's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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