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.
Managing Director at Wells Fargo, Adam Davis, joins Cheddar to discuss how both the consumer and retailer are approaching shopping's busiest time of the year.
Johann Kerbrat, VP and General Manager at Robinhood joins Cheddar to discuss Bitcoin's recent rise and how the company got into election betting. Watch!
Guy Diedrich, SVP and Global Innovation Officer at Cisco joined Cheddar to discuss how our digital diets impact our well being & an upcoming study to prove it!
With the election behind us, many are wondering what the next four years look like for the US economy. Drew Pettit, from Citi Group joins Cheddar to discuss.
