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The action of GameStop Corp. was unstable in the extended session on Tuesday as the video game retailer at the center of the so-called stock meme phenomenon said it had laid the groundwork for its “transformation” and reported lower adjusted fourth quarter results than expectations. and sales.
GameStop GME,
stocks initially rose more than 8% after the report, but reduced gains thereafter, and lost 3% for the last time. The retailer said it earned $ 80.5 million, or $ 1.19 per share, in the quarter, compared to earnings of 32 cents per share in the quarter last year.
Adjusted for one-time items, GameStop earned $ 90.7 million, or $ 1.34 per share, up from $ 1.27 per share a year ago.
Sales fell to $ 2.12 billion from $ 2.19 billion in the fourth quarter of fiscal 2019, due to store closures linked to the pandemic, the company said.
Analysts polled by FactSet expected the video game retailer to post adjusted earnings of $ 1.35 per share on sales of $ 2.21 billion.
GameStop said same-store sales grew 6.5% in the quarter, with online sales up 175% for the quarter and 191% for fiscal 2020. Analysts polled by FactSet expected same-store sales to increase 4.7% in the quarter.
The company said it had “strengthened” its balance sheet and ended the year with $ 635 million in cash, “laying the groundwork for transformation.”
In a separate press release, GameStop said it had appointed Jenna Owens as COO, with a start date of Monday, March 29. Owens was Director and Director of Distribution of Amazon.com Inc. AMZN,
The company also appointed Neda Pacifico, who was an executive at Chewy Inc. CHWY,
as senior vice president of e-commerce. Pacifico also starts on Monday.
Chewy co-founder Ryan Cohen and two of his allies joined GameStop’s board earlier this year, giving rise to hopes he would lead a redesign.
GameStop’s stock is often cited as one of the meme stocks that have skyrocketed in recent months thanks to frantic increases in Reddit comments and social media posts.
See also: GameStop: What’s the Fun of Fundamentals, Ask Reddit Traders on Rocket-Emoji Launch Pad
GameStop shares have gained more than 800% in the past three months, compared to gains of around 7% for the S&P 500 SPX index,
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