On Tuesday, GameStop unveiled its fourth-quarter profit for the first time in two years after dealing with weak sales and cash flow issues. Its stock price went up by 4.62% to $17.65 per share on March 21. Likewise, it is anticipated to increase by 48.44% to $26.20 apiece in the upcoming session.
For the quarter that ended on January 28, net sales decreased to $2.23 billion from $2.25 billion in last year’s Q4. Also, GameStop reported a profit of $48.20 million or $0.16 a share.
Moreover, selling, general and administrative expenses reached 20.40% to $453.40 million in sales. It is lower compared to the 23.90% or $538.90 million of sales earlier in the year.
Through cost cutting, the company is on its way to steering back to profitability. According to CEO Matt Furlong, GameStop is going into 2023 with plans to cut excess costs. This includes their European markets. Furthermore, he mentioned that the retailer plans to strengthen its business with higher margin categories like toys.
Within the full fiscal year, it went down to $5.93 billion in sales compared to $6.01 billion in fiscal 2021. However, its revenue increased due to robust sales in its collectibles category, which GameStop will lean toward for long-term growth.
Similar to other retailers, it experienced supply chain delays, leaving it with an inventory backlog trying to meet high demand.
Xbox Game Offered for Almost $2 in GameStop
A popular first-person shooter game for Xbox is now available for just $1.99 on GameStop. The only catch here is that the copy of the game is pre-owned and is a limited-time offer. Still, GameStop has not announced when it will expire.
Also, gamers can now buy pre-owned Xbox One copies of Titanfall 2 for just $2.00. However, PS4 users would need to fork over $10.00. The price is more than the cost of the game on other digital storefronts.
In addition, Titanfall 2 is a first-person shooter game launched in October 2016 for PCs, the PS4, and Xbox One.