A mall visitor walks be a GameStop store on December 08, 2021 in San Rafael, California.
Justin Sullivan | Getty Images
GameStop shares fell in extended trading Thursday after the video game retailer reported an unexpected loss during the holiday quarter.
Yet the video game retailer said it’s strengthening its relationships with gaming brands and looking for new ways to make money. It said it will launch a new marketplace for non-fungible tokens, or NFTs, by the end of April.
In the fiscal fourth quarter, ended Jan. 29, the company reported a net loss of $147.5 million, or $1.94 per share, compared with a gain of $80.5 million, or $1.19 per share, a year earlier. Adjusted loss per share was $1.86. Total revenue grew to $2.25 billion.
GameStop has not provided a financial outlook since the pandemic began in March 2020. It has also not taken questions from analysts on the company’s earnings calls over the past year. It will hold an earnings call at 5 p.m. ET.
In the fourth quarter, the retailer said it struck deals and grew relationships with brands, including Alienware, Corsair, Lenovo and other PC gaming companies. It said its subscription service, PowerUp Rewards Pro, grew by 32% on a year-over-year basis. Total membership is now about 5.8 million, the company said.
GameStop was an early target in the meme stock frenzy and has gotten a fresh slate of leaders who want to turn the brick-and-mortar chain into an e-commerce player. Chewy co-founder Ryan Cohen was tapped to lead the company’s turnaround as chairman on the company’s board. He hired former Amazon executives, Matthew Furlong, and Mike Recupero, as CEO and COO, respectively.
GameStop’s shares have swung wildly over the past year. Shares hit a 52-week low on Monday of $77.58 — less than one-fourth of the value that it had last June.
As of Thursday’s close, GameStop shares are down about 41% so far this year. Shares rose about 1% on Thursday to close at $87.70. The company’s market value is nearly $7 billion.
Read the company’s press release here.
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