A hefty tax benefit helped drive GameStop’s fiscal fourth-quarter profit sharply higher, but the video-game retailer’s sales declined despite a surge in its online business. The company's latest results fell short of Wall Street’s expectations.
The company, whose stock price soared in January after a social media-fueled frenzy, said Tuesday that it would suspend providing earnings guidance as it focuses on an effort to transform into a more online-focused retailer.
The Grapevine, Texas, company reported a net income of $80.5 million, or $1.19 per share, for the three months ended January 30. That compares with a net income of $21 million, or 32 cents per share, a year earlier.
The latest results include a nearly $70 million tax benefit. Adjusted for that and other one-time items, the company’s earnings amounted to $1.34 per share, versus $1.27 a year earlier.
Revenue fell to $2.12 billion, from $2.19 billion. Analysts were expecting adjusted earnings of $1.35 per share on $2.21 billion in revenue, according to FactSet.
The company said global e-commerce sales made up 34% of net sales in the fourth quarter compared with 12% in the year-ago quarter. As GameStop attempts to transition more of its business online, the company recently named board member Ryan Cohen to spearhead that transition.
GameStop shares were little changed in after-hours trading. They fell 6.6% to $181.75 in the regular trading session.
Emily Peck, National Correspondent at Axios, explains why office vacancies hit 21% despite RTO pushes, highlighting a lasting shift in how Americans work.
Tobias Bauer, CEO & President of Rolling Stock at Siemens Mobility North America, shares insights on a $220M investment reshaping U.S. rail infrastructure.
Kory Kantenga from LinkedIn unpacks how the US added nearly 3x the expected jobs in March, and whether it can last as the Iran war reshapes the economy.
U.S. Air Force pilot Tyler Lucas beat 199 competitors on Beast Games Season 2 to win $5.1M. He joins us live to share how discipline and loyalty won the game.
Osier founder Cheree Ashley spent a decade building recovery programs & now she's channeling that mission into skincare with Selling Sunset's Sandra Vergara.
Genesis just committed to 22 new vehicles by 2030. The brand's COO joins us live to break down their luxury takeover, NY Auto Show reveals, and what's next.
