GameStop Corp. (NYSE:GME) reported a narrower-than-expected loss for its third quarter, while sales missed estimates. The company also filed for an offering of up to $100 million of its common stock.
Net sales were $1,004.7 million, down 30.2% from the fiscal 2019 third quarter reflecting the impact of operating during the last few months of the seven-year-long current generation console cycle and the subsequent limited availability of hardware and accessories.
SG&A was $360.4 million, down $115 million or 24.2% compared to $475.4 million in the prior year third quarter, Adjusted SG&A was $359.7 million, a reduction of $100.0 million, or 21.8% from adjusted SG&A in the prior year third quarter
Net loss was $18.8 million, or $0.29 per diluted share, compared to net loss of $83.4 million, or loss per share of $1.02 per diluted share in the prior year third quarter
According to CEO George Sherman, "Our third-quarter results were in-line with our muted expectations and reflected operating during the last few months of a seven-year console cycle and a global pandemic, which pressured sales and earnings.
"We continued to significantly advance our strategic objectives of creating a digital-first, omni-channel ecosystem for games and entertainment and optimizing our core operations. Leveraging our omni-channel capabilities, we increased E-Commerce sales 257% – demonstrating our ability to serve our customers, wherever, whenever and however they choose to shop."
GameStop is a digital-first omni-channel retailer, offering games and entertainment products in its over 5,000 stores and comprehensive e-Commerce properties across 10 countries.
GME shares got bruised $3.07, or 18.1%, to $13.87.
