GameStop Inc. (NASDAQ: GME) stock gained by 0.85% at the last close while the GME stock price declines by 5.21% in the after-hours session. GameStop, a Fortune 500 corporation based in Grapevine, Texas, is a large specialty retailer with thousands of storefronts and an online presence that sells games and entertainment items.
Financial Highlights
On June 9, 2021, GME announced its financial results for the first-quarter fiscal 2021. Given below is the summary:
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- Despite a nearly 12% drop in GME’s global store base given the strategic de-densification attempts and continued store shutdowns all over Europe due to the COVID-19 pandemic, total sales increased 25.1 percent to $1.277 billion in the fiscal 2021 first quarter, relative to $1.021 billion in the fiscal 2020 first quarter.
- When compared to the first quarter of fiscal 2020, gross margin was 25.9%, down 180 basis points.
- Selling, general, and administrative expenditures were recorded at $370.3 million, down $16.2 million, or 4.2 percent, from $386.5 million in the first quarter of fiscal 2020.
- Operating loss of $40.8 million, down from $108.0 million in the first quarter of fiscal 2020. Adjusted operating loss of $21.6 million, down from $98.8 million in Q1 2020.
- In the fiscal 2021 first quarter, GME lost $66.8 million, or $1.01 per diluted share, relative to a loss of $165.7 million, or $2.57 per diluted share, in Q1 2020. Adjusted total loss of $29.4 million, or $0.45 per diluted share, versus $157.6 million, or $2.44 per diluted share, in the first quarter of fiscal 2020.
- Adjusted EBITDA of $0.7 million, a decrease from $75.5 million in the first quarter of fiscal 2020.
- In Q1 fiscal 2021, income tax expense was $1.3 million, relative to $50.4 million in the first quarter of fiscal 2020.
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Future Expectations
At this time, GameStop is suspending guidance; nonetheless, it thinks that total net sales is the most suitable indicator to use to assess performance. GME’s second-quarter sales trends have been strong, with total sales in May growing by over 27% over the previous year.