GameStop failed to meet expectations in its latest earnings report.
The video game retailer posted net sales of $1.13 billion in Q2 2022 — missing Wall Street estimates of $1.3 billion and down from $1.18 billion for the same period last year.
- GameStop reported a net loss of $108.7 million in Q2, up from $61.6 million in Q2 2021.
- Selling, general, and administrative expenses reached $387.5 million during the quarter.
- The company’s hardware and accessories segment generated $596.4 million in sales.
- Its software segment saw sales reach $316.4 million — making up 27.9% of total sales.
GameStop, which has reported significant losses over the past calendar year, has made recent changes to its business to expedite profits.
The Texas-based company launched a digital asset wallet in May that allows consumers to send, receive, and use cryptocurrencies and NFTs across decentralized apps. In July, GameStop launched its first NFT marketplace where members can buy, sell, and trade NFTs.
The company saw its collectibles segment, which includes the NFT marketplace, generate $223.2 million in sales in Q2 2022, up from $177.2 million for the same period last year.
Big Deal
On Wednesday, GameStop announced that it has secured a deal with cryptocurrency exchange FTX. The two companies will collaborate on e-commerce and online marketing initiatives, which will include GameStop carrying FTX gift cards at select brick-and-mortar stores.
In January, FTX raised $400 million in Series C funding, valuing the company at $32 billion.
