Last Updated: March 22, 2023, 05:33 IST
GameStop Corp posted a surprise profit for the fourth quarter and surpassed revenue expectations as the videogame retailer trimmed costs and reduced headcount, sending its shares more than 32 percent higher in extended trading.
The company has been shoring up its online sales capabilities in a bid to transform into a digital behemoth from its current mainstay of brick-and-mortar stores.
GameStop has also been targeting profitability by reining in expenses and focusing on higher-margin collectibles and pre-owned product categories. Its selling, general and administrative costs fell by about 16 percent in the quarter.
The retailer posted an adjusted profit of 16 cents per share, compared with Wall Street expectations for a loss of 13 cents.
The stock, which is popular among retail investors, lost about half its value last year and has declined 4 percent so far this year.
Net profit for the quarter ended Jan. 31, GameStop’s first in eight quarters, was $48.2 million, compared with a loss of $147.50 million a year earlier.
It reported quarterly revenue of $2.23 billion, compared with analysts’ average estimates of $2.18 billion, according to Refinitiv.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)