GameStop (GME) Q1 2024 earnings summary

Executive summary

• Net sales for Q1 2024 were $881.8 million, a 28.7% decrease year-over-year, with declines across all product categories and geographic segments.

• Net loss narrowed to $32.3 million, or $0.11 per share, from $50.5 million, or $0.17 per share, in Q1 2023.

• Gross profit margin improved to 27.7% from 23.2% year-over-year, despite lower sales, due to cost optimizations and reduced freight expenses.

• Operating loss was $50.6 million, narrowing from $58.4 million in the prior year quarter.

• Cash, cash equivalents, and marketable securities totaled $1.083 billion at quarter end.

Financial highlights

• SG&A expenses decreased by $50.6 million year-over-year, reflecting cost containment efforts, and were $295.1 million (33.5% of net sales).

• Interest income rose to $14.9 million from $9.7 million year-over-year, driven by higher returns on invested cash.

• Cash used in operating activities was $109.8 million, compared to $102.7 million in the prior year.

• Cash provided by investing activities was $189.8 million, primarily from maturities of marketable securities.

• Adjusted EBITDA was negative $31.3 million, versus negative $29.4 million year-over-year.

Outlook and guidance

• Management continues to focus on cost containment, operational efficiency, and optimizing the core business to achieve profitability.

• Proceeds from recent equity offerings are intended for general corporate purposes, including potential acquisitions and investments.