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.
Seth Schachner, Managing Director at Strat Americas, talks Disney's taking control of Hulu, Warner Bros. and Discovery's split and how if affects the viewers.
The Tony Awards on Sunday lured 4.85 million viewers to CBS, its largest broadcast audience in six years. CBS says Monday that Nielsen data shows the telecast — hosted by “Wicked” star Cynthia Erivo — scored a 38% increase over last year’s 3.53 million viewers. That’s the largest audience for the Tonys since 2019, when the telecast that year nabbed 5.4 million viewers and “Hadestown” was crowned best new musical. The latest version also had to compete with the second game of the NBA Finals, between the Thunder and Pacers,
After stumbling out of the starting gate in Big Tech’s pivotal race to capitalize on artificial intelligence, Apple tried to regain its footing Monday during a developers conference that focused mostly on incremental advances and cosmetic changes in its technology.
Six weeks before UnitedHealthcare CEO Brian Thompson was gunned down outside a Manhattan hotel last December, Luigi Mangione mused about rebelling against “the deadly, greed fueled health insurance cartel” and expressed that killing the executive “conveys a greedy bastard that had it coming."
