What Happened: Sales in the first quarter rose 25% year-over-year for GameStop.
The company’s $1.28 billion in sales came in ahead of Wall Street’s consensus estimate of $1.16 billion.
The company reported an adjusted net loss of 45 cents in the first quarter, which beat an estimated loss of 83 cents for the quarter from the Street.
GameStop reported gross margins of 25.9% in the first quarter, down 180 basis points from the prior year.
The company lowered its store count by 12% in a continued push to close underperforming stores.
GameStop did not list e-commerce sales in the first quarterly financial report, which had been a staple item in past reports.
GameStop had $770.8 million in cash as of May 1. The company announced it plans to file a supplemental report where it may offer to sell up to 5 million shares in an at-the-money offering.
What’s Next For GameStop: GameStop announced Matt Furlong as its new CEO. Furlong is an e-commerce leader with experience at Amazon in roles in Australia and North America over nine years.
Prior to Amazon, Furlong worked in a brand, marketing, and sales role with Procter & Gamble. Furlong starts the job June 12.
Mike Recupero was named GameStop’s chief financial officer. Recupero spent 17 years at Amazon including recently serving as the CFO of the North American consumer business and the CFO of Prime Video. Recupero previously served as finance chief of the European consumer business. He began his career at Amazon, holding analyst, manager, and director roles of increasing responsibility. Recupero will start work at GameStop on July 12.
Earlier Wednesday, the company confirmed that Ryan Cohen will be the company’s chairman.
The company suspended its guidance going forward. The report said GameStop expects to see continuous momentum in the second quarter, with May’s total sales up 27% year-over-year.
GME Price Action: Shares of GameStop were down 6.77% at $282.07 in Wednesday’s after-hours session.
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