GameStop expects first-quarter revenue to drop, shares tumble

By Thomson Reuters May 17, 2024 | 6:28 AM

(Reuters) -GameStop expects first-quarter net sales to drop from a year ago, as customers transition to buying video games and collectibles online, while the retailer largely relies on brick and mortar stores.

Shares of the company fell 10% in premarket trading on Friday, as it also filed for a mixed-shelf offering of an unspecified size.

The stock has been part of a retail investor trading frenzy following a series of posts from Keith Gill’s X account “Roaring Kitty”, whose bullish calls on GameStop were a reason for the 2021 meme-stock frenzy.

The company said first-quarter net sales is expected to be in the range of $872 million to $892 million, down from $1.237 billion a year ago.

Net loss in the quarter ended May 4 is expected to be between $27 million and $37 million, narrower than the $50.5 million a year ago, as GameStop benefits from cost cuts.

(Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)