Video game retailer GameStop Corp (NYSE: NYSE:GME) reported second quarter results after the market close Wednesday. Here are the key highlights.
GameStop's Headline Q2 Numbers: GameStop reported second-quarter net sales of $1.136 billion, down from last year’s $1.183 billion. Revenue came in shy of a Street estimate of $1.27 billion, according to data from Benzinga Pro.
The company reported a loss of 35 cents per share in the second quarter, beating estimates of a loss of 38 cents per share from analysts.
GameStop, FTX Strike Partnership: GameStop also announced a partnership with the cryptocurrency platform FTX on Wednesday. The partnership will see GameStop carry FTX gift cards in stores and be the platform's “preferred retail partner in the United States.”
“The partnership is intended to introduce more GameStop customers to FTX’s community and its marketplace for digital assets,” GameStop said.
GameStop will collaborate with FTX on e-commerce and online marketing initiatives as part of the partnership.
The financial terms of the partnership were not disclosed.
GameStop's Q2 Highlights: GameStop highlighted sales of $223.2 million for its collectibles category, which the company said it “intends to grow over the long-term.” The prior year’s second quarter saw sales of $177.2 million for this category.
The company ended the second quarter with inventory of $734.8 million, which it said was reflective of a focus to keep in-stock levels in place and offset and potential future supply chain headwinds.
A focus on cost cutting saw selling, general and administrative expenses decline 14.3% from the first quarter for a total of $387.5 million in the second quarter.
Gamestop’s NFT marketplace was highlighted in the earnings report as a place to allow gamers and collectors a place to buy and sell NFTs.
The company ended the quarter with cash and cash equivalents of $908.9 million and no debt outside of an unsecured term loan related to the COVID-19 pandemic.
Related Link: How To Trade GameStop Stonk Before & After Q2 Earnings
What’s Next: GameStop will host a conference call to share highlights of the results at 5 p.m. ET Wednesday.
GME Price Action: GameStop shares are up 13% to $27.30 in after-hours trading Wednesday. Shares closed down 4% during the regular trading session to $24.06.
Photo via Shutterstock.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga