Traders walk on the floor during morning trading at the New York Stock Exchange (NYSE) on May 14, 2024 in New York City.
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GameStop, the video game retailer currently riding another wave of trading enthusiasm spurred by the “Roaring Kitty” meme merchant, showed no signs of an operational turnaround in its dismal first-quarter results.
The video game retailer on Friday reported net sales of $881.8 million for the period, down 29% from $1.237 billion a year earlier. The sales decline was sharper than the two Wall Street analysts covering the stock had expected. Their estimates ranged from $900 million to $1.09 billion, per FactSet.
GameStop lost $32.3 million during the quarter, a smaller loss than the $50.5 million loss it incurred in the same period a year earlier.
The company also provided an update on its ongoing stock sales, saying it will sell additional shares in addition to the 45 million share sale it announced in May that raised more than $900 million.
The first quarter results came as a surprise. The company – which will be the subject of a YouTube livestream by Keith Gill, known as “Roaring Kitty” later on Friday – was supposed to release results later in the month.
Shares fell 10% in premarket trading, giving up gains of about 30% earlier in the morning. Shares rose 47% Thursday in anticipation of Jill’s live broadcast, which is scheduled to begin at noon ET. Gil might say something on the live stream about his big share.
GameStop has been on a tear since Gill began posting after a nearly three-year hiatus. Quarter to date, the stock is up more than 271%.
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