On Wednesday, GameStop announced first-quarter sales that were above analyst estimates, as the video game retailer shifts to a more online-focused business in the face of increased competition from major stores like Walmart and Amazon.
GameStop’s physical retail business, for which it is best known, was impacted by store closures during the COVID-19 outbreak. During the epidemic, the corporation has been increasing its online sales skills as e-commerce purchasing patterns intensified.
GameStop released its digital asset wallet in May, which allows users to store, transmit, receive, and utilize bitcoins and non-fungible tokens (NFTs). The wallet may also be used to make purchases on GameStop’s NFT marketplace, which is set to launch later this year.
Gamestop’s NFT marketplace announcement, according to Wedbush analyst Michael Pachter, would “have no NFTs for sale and no consumers, and the wallets they are supplying will be empty.”
For several quarters in a row, Pachter said, there was no Q&A session in its earnings calls, and there was no opportunity to seek clarity on its NFT marketplace offering and strategy.
GameStop said its inventory increased to $917.6 million in the quarter ended April 30 from $570.9 million a year earlier, owing to rising customer demand and the risk of supply chain disruptions.
For the first time since the third quarter of 2020, software and collectibles sales accounted for more than half of overall quarterly revenue.
In what is known as a “short-squeeze,” GameStop’s stock skyrocketed 687 percent last year as it was at the heart of a struggle between retail investors collaborating on online forums and Wall Street hedge funds that had taken short positions in the firm.
According to Refinitiv statistics, the company’s net sales were $1.38 billion in the quarter, above analysts’ average forecast of $1.32 billion.
The company’s first-quarter net loss increased to $157.9 million, or $2.08 per share, from $66.8 million, or $1.01 per share, a year earlier.
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