Net sales have dipped at GameStop, but the retailer saw a “healthy reduction” its in net loss as the year progressed.
According to the company’s fiscal report for the third quarter ended October 29, 2022, net sales dropped to $1.18 billion from $1.29 billion year-on-year. GameStop also reported a net loss of $94.7 million in Q3 FY22, compared with a net loss of $105.4 million in Q3 FY21.
Commenting on GameStop’s wider business performance during an earnings call, company CEO Matt Furlong said the retailer remains focused on achieving profitability and driving “pragmatic growth” in the long term.
Addressing its nascent cryptocurrency plans, Furlong said GameStop has “proactively minimized exposure” to risk and doesn’t currently hold a material balance of any token. Although Furlong still believes there is long-term potential for digital assets in the gaming world, he said the company has not and will not risk “meaningful stockholder capital in the space.”
As for how the company will carve a path forward, Furlong explained the company will pursue acquisitions that could prove complementary to its business, continue realigning corporate costs, and attempt to modernize a “crumbling infrastructure.”
“A large portion of our cost cuts will stem from reductions in corporate headcount that have been made during the back half of this calendar year. In some cases, individuals who helped us complete key initiatives have left on their own accord and are not being replaced,” said Furlong.
“In other cases, we’ve made the decision to eliminate or streamline parts of the organization where we can leverage the work completed over the past 18 months to operate with increased efficiency. We now have a firm understanding of the resources required to pursue opportunities in gaming as well as high potential growth categories like collectibles and pre-owned businesses.”
Those comments seem to indirectly address the company’s recent decisions to lay off its CFO and other workers, and reduce the number of staff working on its blockchain wallet.
Looking ahead, GameStop neglected to provide any fiscal guidance, but said it remains committed to achieving profitability in the near term.