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GameStop (NASDAQ: GME) stock enjoyed a significant surge on March 25th, 2024, its biggest one-day jump (over 15%) since December 2023. However, this rally was short-lived. Following the company's announcement of its Q4 earnings on March 26th, the stock price dropped roughly 13.8% year-to-date, underperforming the S&P 500's gain of 9.4%. This decline came after GameStop revealed its financial results for the period ending February 3rd, 2024.
Know the company
Leading retailer GameStop isn't just about brick-and-mortar stores, they're also a major player in the online world with international e-commerce sites.
Gamers and pop culture enthusiasts can find everything they need at GameStop, from new and pre-owned video game hardware and software (both physical and digital) to accessories and collectibles. While sales dipped slightly in fiscal year 2023 compared to the previous year, the company is making strides towards becoming more efficient, as shown by their lower SG&A expenses. Interestingly, they even swung from a net loss in 2022 to a net income in 2023.
How did GameStop do in Q4?
During the February quarter, the company posted net sales of $1.794 billion as compared to $2.226 billion in Q4 FY22.
Its selling, general and administrative expenses were recorded at $359.2 million, or 20.0% of net sales, for the fourth quarter, versus $453.4 million, or 20.4% of net sales, in FY22's fourth quarter.
The company had a net income of $63.1 million for Q4 FY23, which stood at $48.2 million for the previous corresponding period.
At the close of the quarter, GME had cash, cash equivalents and marketable securities worth $1.199 billion.
According to the company, it has a minimal long-term debt. Its only outstanding obligation is a low-interest, unsecured term loan received from the French government's COVID-19 support program.
Fiscal Year 2023 Results
GameStop’s net sales were recorded at $5.273 billion for fiscal year 2023, versus $5.927 billion for FY22.
Its SG&A expenses stood at $1.324 billion, or 25.1% of net sales, for FY23, which was registered at $1.681 billion, or 28.4% of net sales, for the last fiscal year.
The company secured a net income of $6.7 million for FY23, versus a net loss of $313.1 million for fiscal year 2022. It posted an adjusted EBITDA of $64.7 million for the reporting period, versus adjusted EBITDA of $192.7 million for FY22
