On June 1st, 2022, GameStop Corp announced that its FQ revenue was beyond market expectations. This development takes place against a background of pivoting towards an online model. GameStop is facing stiff competition from other retailers like Amazon and Walmart.
The company has had to close many stores during and after the pandemic as it didn’t have much business. To counter this, GameStop has been shoring up its capacity to sell online as this was a visible trend through the pandemic. In May, GameStop launched its very own digital wallet. This can be used to store, receive, send, and use crypto as well as NFTs. This wallet can also be used to carry out transaction on the company’s NFT market, which will go live later this year.
Michael Pachter, an analyst with Wedbush was skeptical of GameStop’s NFT marketplace information. He also said no Q&A session was organized during the earning calls for quite a few quarters. There was no way for anyone to get clarity on the NFT marketplace, products, or the company’s strategy.
As per a GameStop announcement, its inventory for the quarter ending April 30 stood at slightly over $917 million compared to the same time last year. 2021 inventory numbers were $570 million, and the increase was due to customer demand and the possibility of disrupted supplies. Software and collectible sales added 50% to the total quarterly revenue since the 3rd quarter in 2020.
GameStop shares rose by 687% in 2021 thanks to a battle between hedge funds on Wall Street and retail investors. Net sales were $1.38 billion in the quarter, which was good considering analyst predictions of $1.32 billion.