Updated at 8:28 am EST
Game stop (GME) – Get a free report Shares were marked firmly lower in early trading Thursday after the video game retailer posted another set of disappointing quarterly earnings, this time under new CEO Ryan Cohen.
The group also declined to hold a conference call with analysts and instead directed investors to its filings with the Securities and Exchange Commission.
GameStop said sales for the three months ending in October, the group's fiscal third quarter, fell 9.1% from a year earlier to $1.078 billion.
GameStop's net loss for the period was set at $3.1 million, down from a loss of $94.1 million in the same period a year earlier. Its reported loss of 1 cent per share beat Wall Street forecasts for a loss of 9 cents. GameStop has reported only two profitable quarters in the last three years.
'Uphill battle for GameStop': CFRA
“While weakness in third-quarter sales was to be expected, our experts have said that growing market share losses for mass merchants and e-commerce giants like Amazon will continue to be an uphill battle for GameStop,” he said. CFRA analyst John Oh. .
“Furthermore, with cost savings and profitability remaining the focus of GameStop, our experts indicate there may still be a ways to go,” he added.
“In one example, our experts have noted that despite all the store closures we've already seen, GameStop likely still has twice as many stores as needed.”
GameStop shares fell 7.75% in premarket trading to indicate an opening price of $13.69 each, a move that would peg its one-year decline at around 38%.
GameStop, which was valued at $22 billion during the meme stock frenzy in January 2021, is now valued at around $4.5 billion.
The group's SEC filings also noted that Cohen will now manage GameStop's overall “investment policy,” which he says “allows the company to invest in equity securities, among other investments.”
“Depending on certain market conditions and various risk factors, Mr. Cohen, in his personal capacity or through affiliated investment vehicles, may from time to time invest in the same companies in which the Company invests,” GameStop said in its filing. regulate before the SEC 10-Q. .
“Such investments align the interests of the Company with the interests of related parties because they put Mr. Cohen's personal resources at risk in substantially the same way as the Company in connection with investment decisions made on behalf of the Company,” it states. read in the document. aggregate.
GameStop has withstood the loss of executives
Cohen returned to the CEO role in late September following the firing of former boss Matt Furlong, the fifth CEO to leave the Grapevine, Texas, retailer in the last five years.
GameStop has also weathered a notable exodus of senior executive talent, with Chief Financial Officer Diana Saadeh-Jajeh resigning in August.
Meanwhile, Cohen, a billionaire investor famous for a series of investments in meme stocks, faces a Securities and Exchange Commission investigation into some of his trading.
The Wall Street Journal reported on Sept. 8 that the SEC asked Cohen, who is also the founder of pet supply company Chewy.com, to provide information about his operations and communications with senior executives at Bed Bath & Beyond.
Bed Bath & Beyond finally filed for Chapter 11 bankruptcy protection in April of this year. The company was bought out of bankruptcy by Overstock.com, (SHOPPING) – Get a free report which was relaunched under the name Bed Bath.
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