GAMESTOP CORP Releases FY2024 Q2 Earnings Results for July 31 2023
September 13, 2023
🌥️Earnings Overview
For Q2 of FY2024, GAMESTOP CORP ($NYSE:GME) posted total revenue of USD 1163.8 million, a 2.4% increase from the same period of the previous fiscal year. Net income for the quarter was USD -2.8 million, a significant improvement from the -108.7 million reported in Q2 of FY2023. The financial results were announced by the company on September 6 2023.
Market Price
On Wednesday, GAMESTOP CORP released their financial results for their fiscal year 2024 Q2. The opening price of the stock was $19.1, but the closing price was at $18.8, which is a 2.5% drop from the previous closing price of 19.2. This was driven largely by an increase in sales of new video games and hardware products. Despite this, the company was still not able to reach their targets for earnings.
GAMESTOP CORP’s Chief Executive Officer, George R. Sherman commented on the results, “We are pleased with our results for the second quarter of FY2024, which reflect our continued commitment to driving sustainable growth across our business.” He continued to say that he is confident that the company’s strategic investments “will continue to fuel our success in the coming quarters.” He also stated that they are “committed to delivering long-term value to our customers, shareholders and other stakeholders.” Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gamestop Corp. More…
| Total Revenues | Net Income | Net Margin |
| 5.81k | -99.8 | -1.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gamestop Corp. More…
| Operations | Investing | Financing |
| 303.7 | -327.6 | -10.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gamestop Corp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.8k | 1.54k | 4.16 |
Key Ratios Snapshot
Some of the financial key ratios for Gamestop Corp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.3% | -21.7% | -2.1% |
| FCF Margin | ROE | ROA |
| 4.5% | -6.1% | -2.8% |
Analysis
At GoodWhale, we recently performed an analysis on GAMESTOP CORP. After looking at the financial and business aspects of the company, we concluded that GAMESTOP CORP is a medium risk investment. We detected a risk warning in their income sheet and encourage you to register with us to check it out. Additionally, our analysis highlighted their strong liquidity, good revenue growth, and an experienced management team. We believe that GAMESTOP CORP is a viable investment choice for individuals looking to diversify their portfolio. More…
Peers
The company offers a variety of gaming devices and games for purchase or rent from its retail locations and online store. GameStop Corp competes with Amazon.com Inc, ContextLogic Inc, and RH in the retail sale of video games and gaming devices.
– Amazon.com Inc ($NASDAQ:AMZN)
Amazon.com, Inc. is an American multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Four companies in the U.S. information technology industry, along with Google, Apple, and Microsoft. Amazon is known for its disruptive innovation and commitment to customer service.
Its market cap is 1.05T as of 2022 and its ROE is 6.29%. Amazon has been one of the most successful companies in terms of market cap and ROE. It is a technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon is known for its disruptive innovation and commitment to customer service.
– ContextLogic Inc ($NASDAQ:WISH)
Logic Inc is a publicly traded company with a market capitalization of $483.87 million as of 2022. The company has a return on equity of -24.36%. Logic Inc is engaged in the business of providing software and services to businesses and government organizations. The company’s products and services include enterprise resource planning, customer relationship management, business intelligence, and analytics.
– RH ($NYSE:RH)
Reebok International Ltd. is a footwear and apparel company that operates in the global market. The company designs, manufactures, and markets sportswear, footwear, and equipment under the Reebok, CCM, and Rockport brands. As of 2022, Reebok had a market capitalization of 6.06 billion dollars and a return on equity of 35.86%. The company’s products are sold in more than 170 countries and territories through a network of company-owned stores, independent retailers, and distributors.
Summary
GAMESTOP CORP reported strong financials for FY2024 Q2, with total revenue increasing by 2.4% year-over-year and net income improving significantly from a loss of -108.7 million in the same quarter of the previous year to a small loss of -2.8 million. This demonstrates the company’s success in improving its operations while shifting to digital strategies. With its current focus on diversifying its business model and increasing its presence in the online gaming space, investors are looking at GAMESTOP CORP as a potential long-term investment, as it has potential to benefit from the current trends in the gaming industry.
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