GameStop (GME) Q1 earnings, plans to sell more stock

GameStop, the online game retailer at the moment using one other wave of buying and selling enthusiasm spurred on by the meme dealer “Roaring Kitty,” confirmed no indicators of an operational turnaround in its dismal fiscal first-quarter outcomes.

The corporate on Friday posted web gross sales of $881.8 million for the interval, down 29% from $1.237 billion a yr prior. The gross sales decline was steeper than the 2 Wall Road analysts who cowl the inventory anticipated. Their estimates had been in a spread of $900 million to $1.09 billion per FactSet.

GameStop misplaced $32.3 million in the course of the quarter, a narrower loss than the $50.5 million suffered within the year-earlier interval.

The corporate additionally gave an replace on its ongoing inventory gross sales, saying it might promote a further 75 million shares on prime of the 45 million share sale it had introduced in Could that raised greater than $900 million.

The primary-quarter outcomes got here as a shock. The corporate — which might be the topic of a YouTube livestream by Keith Gill, higher often known as Roaring Kitty later Friday — was alleged to launch outcomes on the next Tuesday after the bell.

GameStop shares plunged 40% Friday. The inventory had traded 30% increased at one level in in a single day buying and selling earlier than the earnings report. The inventory rallied 47% on Thursday in anticipation of Gill’s livestream.

Within the livestream, Gill revealed that he did not have any institutional backers and the GameStop positions he had shared in screenshots had been his solely bets.

Gill additionally reiterated his earlier investing thesis in GameStop, betting on a turnaround below CEO Ryan Cohen and providing little new reasoning behind his giant stake.

GameStop has been on a tear since Gill started posting after a roughly three-year hiatus. Quarter to this point, the inventory is up greater than 271%.

Correction: This story has been up to date to right the variety of further shares GameStop is promoting.