GameStop Reported Net Loss of $50.5M for Q1 2023

Shares of video game retailer GameStop (GME) fell nearly 20% shortly after its Q1 earnings report. Not only did the report show a net loss of $50.5 million, but the company also announced the firing of its CEO Matthew Furong a few days ago.

The report showed that GameStop’s Q1 revenue fell 10.3% to $1.24 billion to miss the consensus mark of $1.34 billion. Additionally, the company announced a net loss of 17 cents a share. SG&A expenses fell to 27.9% of sales from 32.8% on an annual basis. However, GME narrowed its quarterly net loss to $50.5 million from $157.9 million last year.

On the balance sheet, GameStop (GME) ended the quarter with a cash position of $1.06B. Additionally, the retailer announced that it will not release an earnings announcement following the report. The company is apparently in urgency to develop an unparalleled product or enter some innovative niche(-s) (for example, AI-assisted movie or movie names or movie episodes search) to beef up its decaying performance.