Now, this is good to see! GameStop’s sales for Q1 are up a pretty sizeable amount, and the future is looking bright for them despite…
Despite a large decrease in hardware sales, things like hugely increased collectible sales and software sales are pumping those numbers up. they are also trying to get into the NFT market during the second quarter and are actually looking for a new COO. Which is quite the giant job considering the size of the company.
For the first time in a while as well, they are looking to increase the workforce. However, despite the giant numbers they still took a net loss, but this is mostly due to a giant increase in stock (nearly $400 million). Let’s take a look at the press release from GameStop.
GameStop’s Q1 Sales Hit More than $1.3 Billion
Here are the highlights from GameStop themselves from the first quarter:
- Net sales were $1.378 billion for the quarter, compared to $1.277 billion in the prior year’s first quarter.
- Sales attributable to new and expanded brand relationships contributed to the Company’s growth in the quarter.
- Inventory was $917.6 million at the close of the quarter, compared to $570.9 million at the close of the prior year’s first quarter, reflecting a continued focus on improving in-stock levels in merchandise to meet increased customer demand and offset supply chain headwinds.
- Ended the period with cash and cash equivalents of $1.035 billion as well as no debt other than a low-interest, unsecured term loan associated with the French government’s response to COVID-19.
- Took steps to support the recent launch of a digital asset wallet to allow gamers and others to store, send, receive and use cryptocurrencies and non-fungible tokens (“NFTs”) across decentralized apps. The wallet extension will enable transactions on GameStop’s NFT marketplace upon its intended launch in the second quarter.
- Continued hiring individuals with experience in areas such as blockchain gaming, ecommerce and technology, and operations, including a new Chief Operating Officer with a background in retail and stores.
The Important Bits
- The biggest thing is probably the $100 million increase in overall sales from last year.
- Despite more sales, they also increased inventory by about $350 million – hopefully, you can actually find what you’re looking for there now.
- Hardware and accessories net sales are at $674 million, which is actually down 4%.
- Software net sales hit $483.7 million, up a massive 21%.
- Collectibles net sales are flying at $221 million, up an insane 26% – it looks like people are more into collectibles than ever!
- The Net loss for the quarter was quite high at $158 million, up 135% from last year, but again, this seems due to the increased stock and workforce costs.
What do you think about the future for GameStop?
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About the Author: Travis Pasch
