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GameStop’s first-quarter sales drop as company releases results early




By Reuters | Updated: June 07, 2024

June 7 (Reuters) – GameStop (GME.N) reported a drop in first-quarter net sales and announced a more than $3 billion stock offer as it released its quarterly report early, sending the video games retailer’s shares down 10% before the bell on Friday.

The company was scheduled to post results on June 11, but instead published its quarterly figures on Friday morning, ahead of a highly anticipated livestream from online influencer Keith Gill.

GameStop’s net sales came in at $881.8 million compared with $1.24 billion a year ago and it missed analysts’ average estimate of $995.3 million, according to two analysts polled by LSEG.

Its net loss narrowed to $32.3 million compared with $50.5 million a year ago. GameStop relies on brick-and-mortar stores and has been grappling with customers turning to e-commerce firms for buying video games and collectibles.

Gamestop’s earnings report did not include any commentary from executives and it said it would not hold a conference call on Friday.

It was not immediately clear why the company released their results ahead of time. GameStop did not immediately respond to a Reuters request for additional details.

GameStop has been surging since the social media return meme stock influencer “Roaring Kitty” Keith Gill, who took the markets by storm in 2021.

The company also announced plans to raise more than $3 billion by selling up to 75 million shares, days after it made nearly $933.4 million by selling 45 million shares.

@ Thomson Reuters 2024