Earnings Results: GameStop reports widening loss, keeps inventories higher to sidestep supply-chain snags

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Fixes headline to reflect that GameStop’s loss widened during the quarter.

GameStop Corp. stock rose slightly in the extended session Wednesday after the specialty retailer reported a narrower-than-expected quarterly loss and said it was keeping inventories higher to sidestep supply-chain problems.

GameStop GME, -2.68% said it lost $158 million, or $2.08 a share, in the first quarter, compared with losses of $67 million, or $1.01 a share, in the year-ago quarter.

Sales rose to $1.38 billion for the quarter, compared with $1.28 billion a year ago, GameStop said.

FactSet consensus, garnered from three analysts, including those from Wedbush and Jefferies, called for GAAP losses of $2.49 a share on sales of $1.32 billion for the videogame and electronics retailer.

The videogame retailer has been one of the most recognizable names among the so-called “meme stocks.”

GameStop said its inventories hit $918 million at the end of the quarter, from $571 million at the close of the first quarter of 2021, as the company vied to improve its in-stock levels “to meet increased customer demand and offset supply-chain headwinds.”

GameStop said it ended the quarter with cash and equivalents of $1.035 billion.

The company launched a wallet for cryptocurrencies and nonfungible tokens last month, and on Wednesday said it is proceeding with plans to have a wallet extension to enable transactions on GameStop’s NFT marketplace, as previously announced, in the second quarter.

Shares of GameStop rose 1.3% in after-hours trading, after ending the regular trading day down 2.7%, and are down 18% so far this year. That compares with losses of 14% this year for the S&P 500 index SPX, -0.75%.

This article was originally published by Marketwatch.com. Read the original article here.

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