- GameStop Corp GME recently recorded its first profit in two years, with fourth-quarter revenue of $2.23 billion, which beat average analyst estimates of $2.18 billion, and adjusted earnings of 16 cents per share, which beat analyst expectations for a loss of 13 cents per share.
- The positive earnings surprise is GameStop's first profitable quarter since 2021.
- Related: GameStop Surges 44% After Earnings: Analyst Says Let 'Short Squeeze Begin'
- Ryan Cohen took over GameStop in 2021, aiming to turn the struggling videogame retailer into an e-commerce behemoth, reported The Wall Street Journal.
- Unfortunately, e-commerce sales did not take off; they fell. Losses increased, and Cohen's new online-sales executives resigned, the report added.
- GME started cutting costs. It canceled plans to build additional warehouses, closed a new e-commerce customer-service center, and laid off hundreds of corporate employees hired under Cohen.
- According to the report, Former GameStop executives and analysts said Cohen also miscalculated what customers were prepared to pay through its website and app.
- "Quarter after quarter we were unsuccessful with new ventures," the report quoted Ted Biribin, GameStop's former employee, who was laid off last summer. "If something didn't work, senior leadership would go onto something else very quickly," he added.
- Also Read: GameStop 'Much Healthier Business Today' Than At Start Of 2021: CEO
- "Our stores, in particular, are a differentiator that will help us maintain direct connectivity to customers and position us to have localized order fulfillment capabilities across more geographies," the report cited GameStop Chief Executive Officer Matt Furlong stating last year in an internal memo.
- Price Action: GME shares are trading higher by 0.27% at $23.21 premarket on Wednesday.
- Photo Via Wikimedia Commons
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GMEGameStop Corp
$28.62-0.38%
Edge Rankings
Momentum
35.42
Growth
95.18
Quality
-
Value
52.12
Price Trend
Short
Medium
Long
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