On Wednesday, GameStop missed analysts’ consensus with its worse-than-expected revenue decline for the third quarter.
On December 07, GME’s stock price fell by 4.83% to $22.26 apiece. However, it is anticipated to soar by 3.95% to $23.14 per share in Thursday’s trading session.
Its earnings per share came at $0.31, higher than the market forecast of 0.28 but below its previous record of $0.35.
Meanwhile, it posted a revenue of $1.19 billion, short of Wall Street expectations of $1.35 billion but higher than its Q2 earnings of $1.14 billion.
During the earnings call, GameStop noted that they are working on revamping their retail business to become more profitable.
In particular, the company recently changed its leadership to expand its digital presence.
The retailer’s new executives are CEO Matt Furlong from Amazon and the activist investor and Chewy Founder Ryan Cohen.
On the other hand, its Chief Financial Officer, Mike Recupero, was fired.
For digital expansion, the company started public beta testing its Non-Fungible Token (NFT) marketplace in July.
Accordingly, GameStop reported a Q3 net loss of $95.00 million, an improvement from its record of $105.00 million a year prior.
However, its balance sheet came lower at $1.13 billion, below $1.14 billion a year before.
CEO of GameStop Open for Acquisitions
GameStop CEO Matt Furlong announced on the company’s earnings call that they are open to exploring acquisitions.
He stated that the retailer may explore the possibility of acquisition once a strategic asset becomes available at a fair price.
This announcement came as GameStop failed to profit from the string of good news in the software industry.
One of the most notable is the success of Activision Blizzard with its Call of Duty Modern Warfare II last month.
Sony followed this trend, recording $1.00 billion in sales during God of War Ragnarok’s first ten days.
Based on these events, it has become obvious that GameStop is losing out as consumers prefer to buy digitally.
Moving forward, the retailer may focus on acquiring assets that would expand its influence in the software industry.
