GAMESTOP said first-quarter net sales dropped and announced a more than US$3 billion stock offer as it released its quarterly report early, sending the video games retailer’s shares down 10 per cent before the bell on Friday (Jun 7).
The release came as a surprise. The company was scheduled to post results on Jun 11, but instead published its quarterly figures on Friday morning, ahead of a highly anticipated livestream from online influencer Keith Gill.
The company’s net sales came in at US$881.8 million in the quarter ended May 4, compared with US$1.24 billion a year earlier. Its net loss narrowed to US$32.3 million in the quarter, compared with a net loss of US$50.5 million a year earlier.
Gamestop’s release was devoid of any commentary or quotes from executives, and it said it would not hold a conference call on Friday following results.
The company largely relies on brick-and-mortar stores and has been grappling with customers turning to e-commerce firms for buying video games and collectibles.
The company also announced plans to raise more than US$3 billion by selling up to 75 million shares, days after it made nearly US$933.4 million by selling 45 million shares. REUTERS
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