GameStop (GME) 2Q 2021 Results

By on September 8, 2021 0

People walk past a GameStop store in Brooklyn on January 28, 2021 in New York City.

Spencer Platt | Getty Images News | Getty Images

Video game retailer GameStop said on Wednesday that its second-quarter loss had narrowed as sales rose from a year ago.

The retailer also said the U.S. Securities and Exchange Commission requested additional documents for an investigation into GameStop and the business activities of other companies, which the retailer disclosed in May.

GameStop said the investigation is not expected to negatively impact the business.

The company’s shares fell more than 2% in the extended trading. GameStop’s shares have been caught in the so-called meme market frenzy, with primarily retail investor interest driving its stock value up 957% since the start of the year. GameStop’s market cap has swelled to $ 14.28 billion, but the company is still posting quarterly losses.

For the quarter ended July 31, the company reported a net loss of $ 61.6 million, or 85 cents per share, compared with a loss of $ 111.3 million, or $ 1.71 per share, there is one year old. On an adjusted basis, GameStop lost 76 cents per share.

Sales reached $ 1.18 billion from $ 942 million a year earlier.

According to Refinitiv, analysts expected the company to lose 67 cents a share on revenue of $ 1.12 billion.

GameStop has tried to move its business more towards e-commerce. In an effort to improve its delivery, the company announced it has signed a lease for a 530,000 square foot distribution center in Reno, Nevada. The site will help it expand its distribution network on both American coasts.

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