GameStop Reports Decline in Hardware Sales

GameStop Corp. delivered mixed fiscal first-quarter earnings after the bell on Wednesday,  reporting a decline in game consoles and accessories sales.

The American electronics retail company generated $673.80 million in hardware sales, which amounted to 48.90% of all profit. The figure also weakened from $703.50 million in the year-ago quarter. Nevertheless, GameStop made $483.70 million on software, hiking from $397.90 million in the year-ago quarter.

Similarly, it produced $220.9 million in earnings from collectibles, surpassing $175.40 million in the same period last year. This strength explained why the business notably leaned into non-fungible tokens, which have become a new type of digital souvenir. NFTs are online items linked to the blockchain with the authentication of the original versions.

Subsequently, the company reiterated its plans to launch an NFT marketplace by the end of the current quarter. It has updated its steps to support the recent launch of a digital asset wallet. This move will allow users to send and receive the tokens.

Moreover, GameStop reported a $157.90 million net loss, worse than the previous $66.00 million. Regardless, its overall revenue posted at $1.38 billion, outpacing the anticipated $1.32 billion.

Previously, the store closures during the Covid-19 pandemic hampered the firm’s physical retail business.

Correspondingly, the company bolstered its online sales capabilities as shopping trends toward e-commerce accelerated.

Gamestop Did Not Provide a Financial Outlook

Furthermore, GameStop has again not provided a financial outlook for the current quarter. CEO Matt Furlong explained that the firm did not want to deliver guidance during the early stages of its transformation.

He also stated the company continues to focus on embracing change. The business also aims to hold long-term stockholder value through investing in commerce and other emerging technologies.

However, shares of GameStop have traded 20.57% or 31.44 points lower since the start of the year.