Video game retailer GameStop Corp. EMG released its first-quarter financial results after the market closed on Wednesday. Here are the main highlights.
What happened: GameStop reported net sales of $1.378 billion in the first quarter, up 7.9% year-over-year. Net revenue exceeded Street’s estimate of $1.32 billion, according to data from Benzinga Pro.
First-quarter earnings were a loss of $2.08 per share, missing a consensus estimate of a loss of $1.45 per share.
The company credits new and expanded brand relationships as contributing to net sales in the first quarter.
The company ended the quarter with inventory of $917.6 million, compared to $570.9 million at the end of the first quarter a year earlier. The increase is due to meeting increased customer demand and taming supply chain headwinds, according to the company.
GameStop ended the first quarter with $1.04 billion in cash and no start, other than a low-interest term loan.
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And after: The company highlighted the recent launch of its digital asset wallet and its push into the non-fungible token space.
“The wallet extension will enable transactions on GameStop’s NFT marketplace when it launches in the second quarter,” the company said.
The company said it continues to hire for the on-chain gaming business.
GME Price Action: GameStop shares closed 4% lower at $119.56 and were up 8% at $128.98 in after-hours trading at the time of writing.