GameStop Continues Troubling Trend in Q3

GameStop continues to see a dip in sales and Q3 data shows that the company is not showing that it can climb out of the troubling spot it has been in for the last few years, according to the company’s financial report.

The numbers demonstrate the financials for the three month period that ended on October 29th, 2022.

The numbers:

• Net sales: $1.2 billion, down 8% year-over-year
• Net loss: $94.7 million, down 10% year-on-year
• Hardware and accessories: $627 million, down 6% year-over-year
• Software: $352 million, down 19% year-over-year
• GameStop’s net loss was down 10% compared to the same period last year, but still hit $94.7 million
• Sales decreased across the board

In an earnings call (as transcribed via Seeking Alpha), Gamestop CEO Matt Furlong stated that the company would not provide “formal guidance at this time.”

“It is worth reiterating, however, that our goal is to achieve profitability in the near term,” he said.

“I want to finish by reiterating what we’ve said in the past. We’re attempting to accomplish something unprecedented in the retail sector. We’re seeking to transform a legacy brick-and-mortar business that was on the brink of bankruptcy into a retailer that meets customers’ needs through our stores, e-commerce properties and emerging sales channels. This path carries risk and is taking time, but it is the path we are on. With that said, GameStop is a stronger business today than at any time in the recent past.”