GameStop Reports Net Loss of Over $ 100 Million in Last 3 Months
GameStop revealed in its latest Q3 2021 earnings report that it has lost more than $ 100 million in the past three months.
As reported by GameSpot, the game retailer’s total revenue for the quarter was $ 1.297 billion, a significant increase from $ 1.005 billion in the same period last year thanks to contributions from new partners Samsung, Vizio, LG, Razer and other technology companies. However, he reported a net loss of about $ 105.4 million, up from $ 18.8 million in losses last year.
GameStop ended the year with cash and cash equivalents of $ 1.413 billion, another significant increase from the end of the same period last year. Oddly enough, he also did not accumulate any debt other than the $ 46.2 million low interest unsecured term loan associated with the French government’s response to the COVID-19 pandemic.
The games retail giant added that inventory closed at $ 1.141 billion, up from $ 861 million last year, due to the focus on top investment in inventory for meet customer demand and mitigate supply chain issues caused by the pandemic. The company also said it has opened new offices in Seattle and Boston, two major technology hubs in the United States, to encourage new talent residing in those markets to join the company.
The lion’s share of GameStop’s revenue in the last quarter came from hardware and accessories (i.e. consoles, controllers, and headsets), which grossed $ 669.9 million, or 51. 7% of its income. Meanwhile, software sales accounted for $ 434.5 million, or 33.5% of its revenue.
Despite all of GameStop’s gains, $ 105.4 million is a huge loss, especially after Reddit investors increased their shares in a war with Wall Street earlier this year. You can see the full version of the revenue report here.