Video game retailer GameStop Corp (NYSE:GME) reported second quarter results after the market close Wednesday. Here are the key highlights.
What Happened: GameStop reported second-quarter net sales of $1.136 billion, down from last year’s $1.183 billion. Revenue came in shy of a Street estimate of $1.27 billion, according to data from Benzinga Pro.
The company reported a loss of 35 cents per share in the second quarter, beating estimates of a loss of 38 cents per share from analysts.
GameStop highlighted sales of $223.2 million for its collectibles category, which the company said it “intends to grow over the long-term.” The prior year’s second quarter saw sales of $177.2 million for this category.
The company ended the second quarter with inventory of $734.8 million, which it said was reflective of a focus to keep in-stock levels in place and offset and potential future supply chain headwinds.
A focus on cost cutting saw selling, general and administrative expenses decline 14.3% from the first quarter for a total of $387.5 million in the second quarter.
Gamestop’s NFT marketplace was highlighted in the earnings report as a place to allow gamers and collectors a place to buy and sell NFTs.
The company ended the quarter with cash and cash equivalents of $908.9 million and no debt outside of an unsecured term loan related to the COVID-19 pandemic.
Related Link: How To Trade GameStop Stonk Before & After Q2 Earnings
What’s Next: GameStop will host a conference call to share highlights of the results at 5 p.m. ET Wednesday.
GME Price Action: GameStop shares are up 13% to $27.30 in after-hours trading Wednesday. Shares closed down 4% during the regular trading session to $24.06.
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