At the time of writing, the GameStop share price is down 5.4% to US$286 after hours.
Let’s have a look at the results for the company that has been at the centre of meme-stock speculation.
Sales growth and narrowed losses
While some commentators have sworn off GameStop shares as pure speculation, the global games retailer is certainly putting up a fight.
First-quarter results show a net sales increase of 25.1% to US$1.277 billion. The company managed to achieve this growth despite a 12% reduction in its global store presence.
A decline in expenses also fed into GameStop’s operating loss being narrowed. For the reported period, the company delivered an operating loss of US$40.8 million compared to US$108 million for the prior corresponding period.
The improved performance follows the company’s very public decision to evolve and pursue a stronger e-commerce form.
GameStop shares unfazed by new CEO and CFO
In addition to the financial results, the company announced a couple of new appointments. In an endeavour to add gaming, retail, and technology experience, GameStop is refreshing the chief executive officer and chief financial officer roles.
The new CEO is former Amazon.com Inc (NASDAQ: AMZN) executive Matt Furlong. Filling the CFO spot, Mike Recupero also comes from Amazon, with over 17 years in various finance roles.
Exiting CEO George Sherman left a message to shareholders on the conference call:
Given this is my last time speaking with you as GameStop CEO, I want to share that I am very proud of what we have accomplished over the past two years, including navigating the pandemic, positioning the company with strong liquidity, and an improved platform for growth. It’s been a privilege to lead so many dedicated and talented team members who collectively possess a tremendous passion for the gaming industry.
As recently reported by Motley Fool US, prior to today’s release, Gamestop shares had also “fallen sharply in 9 of the past 10 quarters the day after it reports earnings.”