On March 17, GameStop Corp. (GME) declared its financial results for Q4 and full-year which ended on January 29, 2022. The company also announced its intention for the launch of the NFT marketplace by the end of Q2 fiscal 2022. Consequently, the stock plummeted down in the after-hours session on missed earnings.
It seems investors were looking forward to the earnings with positive enthusiasm as the stock traded in the green during the regular session. GME closed the regular session with a gain of 0.97% at $87.70. The volume of the share exchanged remained above the average at 3.45 million. Following the results announcement, the stock reversed and entered the red as it declined by 8.04% in the after-hours. Hence, GME was trading at a value of $80.65 per share in the after-hours while 1.06 million shares exchanged hands.
The multichannel video games, consumer electronics, and wireless services retailer, GameStop Corp. was founded in 1996.
GME’s Latest Financial Results
In the fourth quarter ended January 29, the company had net sales of $2.254 billion against $2.122 billion in the year-ago quarter.
Moreover, the company’s PowerUp Rewards Pro members reached 5.8 million in the quarter with an increase of 32% YOY.
Additionally, GME formed new relationships with Alienware, Corsair, and Lenovo and partnered with Immutable X for supporting its NFT marketplace. The company also redesigned its app with an enhanced user interface and more functionality.
For the full year, GME reported net sales of $6.011 billion, against $5.090 billion in the previous year.
Furthermore, the company had a net loss of $381.3 million in fiscal 2021, against $215.3 million in fiscal 2020.
At the end of the year, the company had $1.271 billion in cash and cash equivalents and $915 million in inventory. Comparatively, the same were $635 million and $602.4 million at the end of fiscal 2020.
In addition, the company also raised $1.67 billion in capital and eliminated its long-term debt except the French government’s Covid-19 associated.
Partnership with Immutable X
On February 3, the company announced entering into a partnership with Immutable X Pty Limited. Thus, resulting in up to $100 million funds in Immutable X’s IMX tokens. The companies plan to use the fund for grants to NFT content and technology creators. Added to this, Immutable X will provide up to $150 million in IMX tokens to GME upon the completion of certain milestones.