GameStop Corp.’s stock fell nearly 9% in extended trading Wednesday after the company reported fiscal second-quarter results that beat revenue estimates but fell short on earnings.
Shares remained in a holding pattern for about an hour before plunging as much as 10% following a brief conference call in which GameStop’s new chief executive, Matt Furlong, read off a press release and took no questions.
The videogaming retailer
GME,
reported a net loss of $61.6 million, or 85 cents a share, compared with a net loss of $111.3 million, or $1.71 a share, in the year-ago quarter. The company’s adjusted net loss was $55 million, or 76 cents a share.
Revenue rose 26% to $1.18 billion from $942 million a year ago.
Analysts surveyed by FactSet had expected a net loss of 67 cents a share on revenue of $1.12 billion.
The company also announced it had entered into a lease of a new 530,000-square-foot fulfillment center in Reno, Nev., as well as the lease of a new customer care center in Pembroke Pines, Fla.
Net sales [revenue] remains the ultimate barometer of the company’s financial performance for investors, GameStop CEO Furlong said during an 8-minute conference call after the results were announced. The company did not take questions.
Wednesday’s results reflect more favorable debt and growth from a year ago, when the company reported a loss of $1.40 a share.
GameStop’s stock is up an astounding 955% so far in 2021. The broader S&P 500 index
SPX,
has gained 20% this year.
