GameStop Shares Fall On Q2 EPS Miss, Revenue Beat

A leading video game retailer reported second-quarter financial results after the market close Wednesday and shared a brief company update.

What Happened: GameStop Corp GME reported net sales of $1.18 billion in the second quarter. The total was up 26% year-over-year and came in ahead of the Street estimate of $1.12 billion.

Earnings came in at a loss of 76 cents per share, which missed estimates by 10 cents.

GameStop ended the quarter with cash of $1.78 billion. The company reports it has no long-term debt, other than a $47.5 million loan that is associated with the French government’s response to the COVID-19 pandemic.

Related Link: Here's Why Jon Najarian Is Holding GameStop Call Options Through Earnings 

GameStop said it continued to invest in long-term growth initiatives including expanding the company’s product catalog, enhancing its fulfillment network and adding talent to the company.

In the second quarter, GameStop entered into a lease for a new Reno, Nevada fulfillment center that is 530,000 square feet. The fulfillment center will help the company span both coasts of the U.S.

A new customer care center in Florida was also signed to a lease as the company starts to build out its U.S. customer care operations.

GameStop will host a conference call at 5 p.m. ET Wednesday.

GME Price Action: GameStop shares are down 2.3% to $194.20 in after-hours trading.

Photo: Dwight Burdette on Wikimedia