The Strategist

GameStop shares lose over 7% after reporting losses

09/09/2021 - 06:42

GameStop reported a net loss of $61.6 million for the quarter ended July 31. Last year, the video game retailer posted a loss nearly twice as large. The company intends to expand its business with online sales on both coasts of the United States.

Mike Mozart via flickr
Mike Mozart via flickr
Shares of retailer GameStop, a company popular with Reddit traders, fell more than 7 percent in extended trading Wednesday, Sept. 8. That came after the company reported a loss of nearly half of its 2020 level for the quarter ended July 31, CNBC reports.  

The company reported a net loss of $61.6 million for the quarter ($0.85 per share). In the previous year, GameStop reported a loss of $111.3 million ($1.71 per share). On an adjusted basis, GameStop lost $0.76 per share. The company's sales rose to $1.18 billion from $942 million a year earlier. According to Refinitiv, analysts expected the company to lose $0.67 cents per share on revenue of $1.12 billion.

GameStop is trying to shift its business toward e-commerce. In an effort to improve delivery of online orders, the company announced that it has signed a lease for a fulfillment center in Reno, Nevada. It intends to expand its retail network on both coasts of the U.S. using the Internet. The retailer has leased a customer service center in Pembroke Pines, Florida, to expand its U.S. operations.