Games retailer GameStop has released its financial report for Q3 of the current fiscal year, and the numbers highlight continued losses for the embattled company. According to the data, net sales decreased to $1.2 billion, a drop of 8% compared to the same period last year. Meanwhile, gross profit reached $291.6 million compared to last year’s $318.6 million. In total, net losses reached $94.7 million.
One of the largest sales categories, console hardware, dropped 6% during the quarter, to $627 million in sales, and software sales fell 19%, to $352 million. As in previous reports, GameStop CEO Matt Furlong attributed the losses to a shifting retail landscape, but he remained optimistic that the company could become profitable in the near term.
As part of his outlook, Furlong noted that GameStop has scaled back on its cryptocurrency and NFT efforts.
“The Company has proactively minimized exposure to cryptocurrency risk throughout the year and does not currently hold a material balance of any token,” he said in a call to shareholders. “Although we continue to believe there is long-term potential for digital assets in the gaming world, we have not and will not risk meaningful stockholder capital in the space.”
As part of this backtracking, Furlong pointed out a series of layoffs that appear to have mostly impacted the corporate segment of the business.
“Today, we’re in the process of aligning corporate costs through our go-forward needs after completing the majority of necessary upgrades to our systems, fulfillment capabilities and overall foundation. A large portion of our cost cuts will stem from reductions in corporate headcount that have been made during the back half of this calendar year.”
According to Furlong’s presentation, GameStop is in a relatively safe position regarding its debt, or lack thereof.
“As a result of these steps and our planning, we believe GameStop is well positioned, heading into 2023. We stand to benefit from our strong cash position, lack of debt, healthy inventory mix, shrinking cost structure and disciplined focus on categories where we have competitive positioning.”
GameStop’s steady decline in profitability has been well-documented at this point, and has had many unexpected developments, including the meme stock to-do from 2021. A film is reportedly in development about the phenomenon.
Sam, the Editor-in-Chief of GameDaily.biz, is a former freelance game reporter. He's been seen at IGN, PCGamesN, PCGamer, Unwinnable, and many more. When not writing about games, he is most likely taking care of his two dogs or pretending to know a lot about artisan coffee. Get in touch with Sam by emailing him at sdesatoff@rektglobal.com or follow him on Twitter.
GameDaily.biz © 2024 | All Rights Reserved.
