Game Stop announced on the 17th that its fourth quarter (November 2021 to January 2010) financial results were $ 147.5 million ($ 1.94 per share). ) Was in the red. In addition to rising costs due to supply constraints, we received increased spending to shift our business focus from physical stores to e-commerce.
In the same period of the previous year, it was in the black at $ 80.5 million ($ 1.19 per share).
CEO Matt Farlong said in a telephone interview, “Supply chain issues and (coronavirus Omicron) Omicron mutants (outbreaks) have had a significant impact on the holiday season of the year. There was. “
The fourth quarter, which is usually the holiday season, is a good quarter for the company as new “Xbox” and “PlayStation” are launched and demand increases. However, parts shortages and other supply chain issues that hit game console makers such as Sony and Microsoft have affected GameStop’s business.
The company’s net sales were up 6.2% to $ 1.88 billion and gross profit was down 15.7%.
Michael Pachter, an analyst at Wedbush Securities, said the decline in gross profit was “because of the exceptionally poor gross margin.” “It’s possible that used games weren’t selling well, profit margins were lower than usual, and hardware sales were higher than usual,” he said.
GameStop is also increasing spending to hire talent, expand production capacity, expand its e-commerce sector, and launch new products aimed at increasing its digital presence.
In addition, the company announced on the 17th that it intends to launch a marketplace for non-fungible tokens (NFT) by the end of the second quarter of 2022.