GameStop quarterly revenue beats estimates on higher demand for video games

People walk by a GameStop in Manhattan, New York, US, December 7, 2021. REUTERS/Andrew Kelly

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June 1 (Reuters) – GameStop Corp (GME.N) reported first-quarter revenue that exceeded market expectations on Wednesday, as the video game retailer pivots toward a more online-focused model amid increasing competition from large retailers such as Walmart Inc (WMT .N) and Amazon.com Inc (AMZN.O).

Store closures during the COVID-19 pandemic affected GameStop’s physical retail business, for which it is primarily known. The company has been bolstering its online sales capabilities as shopping trends towards e-commerce accelerated during the pandemic.

The company’s shares soared 687% last year as it was at the center of a battle between retail investors coordinating on online forums and Wall Street hedge funds that had taken short positions in GameStop, in what is called a “short-squeeze.”

Net sales were $1.38 billion in the quarter ended April 30, above analysts’ average estimate of $1.32 billion, according to Refinitiv data.

Net loss widened to $157.9 million, or $2.08 per share, for the first quarter, from $66.8 million, or $1.01 per share, a year earlier.

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Reporting by Akash Sriram in Bengaluru; Editing by Krishna Chandra Eluri

Our Standards: The Thomson Reuters Trust Principles.

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