GameStop Q1 Financials – Net Sales Drop, $32.3M Loss

GameStop Corp. (NYSE: GME) has released its financial results for the first quarter ended May 4, 2024. The net sales for the first quarter were $882 million, a decrease from $1.237 billion in the prior year's first quarter. The selling, general, and administrative expenses were $295.1 million, representing 33.5% of net sales, compared to $345.7 million, or 27.9% of net sales, in the prior year's first quarter. The net loss was $32.3 million for the first quarter, an improvement from a net loss of $50.5 million for the prior year's first quarter.

At the close of the quarter, GameStop had cash, cash equivalents, and marketable securities totaling $1.083 billion, and the long-term debt remained limited to a low-interest, unsecured term loan associated with the French government's response to COVID-19.

It's worth noting that the company did not hold a conference call on the day of the release. In evaluating the company's core operating performance, GameStop used certain non-GAAP measures, such as adjusted SG&A expenses, adjusted operating income (loss), adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA, and free cash flow. These non-GAAP financial measures are believed to provide useful information to investors.

The company's use of non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. It's also important to note that the company's definition and calculation of non-GAAP financial measures may differ from that of other companies. Therefore, certain items that may be excluded or included in non-GAAP financial measures could impact the company's financial position, results of operations, or cash flows and should be considered in assessing the company's actual and future financial condition and performance. Today the company's shares have moved -38.8% to a price of $28.47. If you want to know more, read the company's complete 8-K report here.

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