The company said Wednesday that it burned through cash and inventory and lost money.
There is a new partnership with FTX.
The company's shares increased in after hours trading.
The video game retailer's total sales fell to $1.14 billion in the second fiscal quarter from $1.18 billion a year ago. The company's losses increased to $108.7 million, or 36 cents per share, compared with a loss of $61.6 million, or 21 cents, a year prior.
The company's results can't be compared with estimates because there aren't many analysts covering it.
At the end of the quarter, there was a huge increase in inventory. At the close of the previous year's second quarter, that figure was $596.4 million. The company said in a release that it bulked up to keep up with customer demand.
New initiatives include NFTs. At the end of the quarter, it had $908.9 million in cash and cash equivalents, which was less than half of what it had at the end of last year.
The company didn't give an outlook Since the beginning of the Pandemic, it hasn't given guidance.
The video game retailer is trying to find a new business model. Ryan Cohen, the founder of Chewy and former activist investor for Bed Bath & Beyond, is the board chair.
The company has struggled to drive profits and has trimmed costs. The company laid off employees after firing its CFO. Diana Jajeh took over as the company's CFO.
The company had layoffs in the first quarter of the year.
Nonfungible token is one of the new ways to make money. The NFT marketplace is open to the public for testing. It allows users to connect their own digital asset wallet, such as the recently launched GameStop wallet, so they can buy and sell virtual goods.
Growth of some newer businesses was pointed out by the retailer. In the second quarter of this year, sales of collectibles increased from $177 million to $223 million.
The retailer has a new partner. In addition to collaborating with FTX on new ecommerce and online marketing initiatives, GameStop will begin carrying FTX gift cards in selected stores.
Sam Bankman- Fried founded FTX. He has become a lender of last resort for firms that are struggling due to the decline in assets.
The agreement with FTX appears to be related to the stock's status as a meme stock
The company's share price has gone up and down. The share price went from $19.39 to $63.92 over the course of a year. The company is worth $7.31 billion, but its stock is down about 36% this year.
This is where you can read the earnings release from Gamestop.
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