- GameStop reported third quarter net sales of $1.08 billion, down 9.1% from $1.19 billion a year ago.
- The video game retailer also said Wednesday its net loss fell to $3.1 million for the quarter, down from $94.7 million year over year.
- Gross profit for the quarter was $282 million, down 3.4% versus a year ago. Selling, general and administrative expenses were $296.5 million, down 23.6% from last year. The company attributed the decline in SG&A to its ongoing cost reduction initiatives, including a reduction in labor-related and consulting service costs.
GameStop did not hold a quarterly earnings conference call, opting instead to disclose and discuss its financial performance through a press release and filings with the U.S. Securities and Exchange Commission.
“GameStop entered a new phase of its transformation during the second half of 2022,” the company said in its 10-Q. “As a result, GameStop is focused on three overarching goals: establishing an omnichannel retail experience, achieving profitability, and leveraging brand equity to support growth.”
While cost savings and profitability continue to focus areas for the company, the retailer still may have a ways to go to achieve its goals, according to John Oh, an analyst at global research firm Third Bridge “Our experts have noted that despite all the store closures we’ve already seen, GameStop still likely has twice as many stores today than what is needed,” Oh said in emailed comments.
“While the softness in Q3 sales was to be expected, our experts have said that the increasing market share losses to mass merchants and e-commerce giants such as Amazon will continue to be an uphill battle for GameStop,” Oh said.
GameStop on Tuesday also approved a new investment policy. Ryan Cohen, GameStop’s CEO and board chairperson, has been given the authority to manage the company’s investment portfolio in both public and private markets, according to a regulatory filing.
“Mr. Cohen, in his personal capacity or through affiliated investment vehicles, may at times invest in the same companies in which the company invests,” GameStop said in the regulatory filing. “Such investments align the interests of the company with the interests of related parties because it places the personal resources of Mr. Cohen at risk in substantially the same manner as the company in connection with investment decisions made on behalf of the company.”
The board appointed Cohen executive chairman of the company on June 7 and named Mark Robinson the new principal executive officer and general manager of the company. In September, the board voted unanimously to appoint Cohen as president, CEO and chairman. Cohen abstained from that vote, and on that appointment, stepped down as executive chairman. Robinson remains the company’s general counsel and secretary.
The company has seen several leadership roles turnover this year. Former Chief Financial Officer Diana Saadeh-Jajeh resigned in August after about a year. The board appointed Daniel Moore as the principal accounting officer and interim principal financial officer.
Three others have recently left leadership positions at GameStop. Frank Ragan, the company’s vice president of store operations, left that position in November after 18 years with the retailer. Jackson Speake, who was the vice president of corporate finance, left in October after nearly four years. Brandon Gentry, GameStop’s former vice president of loss prevention, also exited the company in October after 13 years, according to LinkedIn posts from those individuals.
GameStop did not respond to a request for comment from RetailDive regarding the most recent leadership changes.