Video game retailer GameStop Corp (NYSE:GME) shares posted their first-quarter 2024 results early Friday, ahead of the scheduled June 11 date.
The company reported net sales of $881.8 million, down from $1.237 billion year-over-year. The net sales total missed a consensus estimate of $995.3 million.
The company reported a loss of 12 cents per share, missing estimates of a loss of 9 cents per share.
The performance reflects customers switching to online video games and collectibles as the retailer relied on brick-and-mortar stores, Reuters said.
The gross margin improved by 450 basis points to 27.7%. Net loss for the quarter was $32.3 million, compared to $50.5 million last year.
The company held $1.08 billion in cash and equivalents as of May 4, 2024.
The stock got a boost from the return of Keith Gill, aka Roaring Kitty, on social media after three years of silence. Gill is known as a leader of the meme stock movement.
GameStop will be the subject of a YouTube livestream later Friday by meme trader Gill.
GameStop has also filed a prospectus supplement with the SEC regarding its at-the-market offering program, which allows for the sale of up to 75 million shares.
Before this filing, GameStop sold 45 million shares on May 17, generating approximately $933.4 million in gross proceeds.
The company said it plans to use the net proceeds from the new offering for general corporate purposes, including mergers and acquisitions.
GameStop shares are up more than 78% in the past 12 months. Investors can gain exposure to the stock through iShares Core S&P Mid-Cap ETF (NYSE:IJH) and SPDR MidCap Trust Series I (NYSE:MDY).
Price promotion: GME shares were trading 16.9% lower at $38.64 premarket at last check on Friday.
Photo via Shutterstock.
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This article GameStop Releases First Quarter Results Ahead of ‘Roaring Kitty’ Event, Files Prospectus to Raise Capital via Stock Issuance originally appeared on Benzinga.com
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