Video game retailer GameStop Corp GME reported fourth-quarter and full fiscal year earnings after the market close Thursday. Here's what investors need to know.
What Happened: GameStop reported net sales of $2.25 billion in the fourth quarter, compared to $2.12 billion in the prior year’s period. The total beat a Street estimate of $2.22 billion, according to Benzinga Pro.
An adjusted earnings loss of $1.86 per share was down sharply from positive $1.34 in the same period last year.
The company announced it launched new and extended partnerships with companies including Alienware, Corsair Gaming Inc CRSR and Lenovo that boosted sales growth in the fourth quarter. A highlighted item in the financial report was the expansion of consumer electronics, PC gaming equipment and refurbished hardware in stores and online.
PowerUp Rewards Pro membership was up 32% year-over-year, with GameStop ending the full year with 5.8 million members.
In the full fiscal year, GameStop had sales of $6.01 billion, up from $5.09 billion in the previous full fiscal year.
GameStop ended the fiscal year with $1.27 billion in cash and cash equivalents.
What’s Next: GameStop said its non-fungible token marketplace will be launched by the end of the second quarter in fiscal 2022.
The marketplace is being launched in partnership with Immutable X (CRYPTO: IMX).
GME Price Action: GameStop shares are down 7.49% to $81.13 in after-hours trading. Shares have traded between $77.58 and $344.66 over the last year.
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