GameStop Corp. announced on Friday that it expects a substantial decline in sales for the first quarter of fiscal 2024.
The company projects revenue to fall by approximately 28%, from $1.2 billion in the same quarter last year to a range of $872 million to $892 million.
GME reduced net loss forecast
Despite the anticipated drop in sales, GameStop’s preliminary report indicates an improvement in net loss.
The company estimates a net loss between $27 million and $37 million for the quarter, compared to a net loss of $50.5 million in the same period last year.
This projected reduction suggests that the company is making progress in managing its expenses.
Impact of market volatility
The announcement comes amid increased market volatility for GameStop, particularly after the return of Keith Gill, known as “Roaring Kitty,” to social media.
Gill played a central role in the 2021 meme stock frenzy that saw GameStop’s share price skyrocket. His recent reappearance has once again brought attention to the company’s stock, contributing to fluctuations in its market performance.
Stock performance remains strong
Despite the recent declines in trading sessions, GameStop’s shares have shown significant gains. The company’s stock is up 168% over the past month and has increased nearly 58% year-to-date.
This strong performance reflects continued investor interest and speculative activity surrounding the stock.
GameStop outlook
As GameStop navigates these financial challenges, the company’s ability to stabilize and grow its revenue will be critical.
The anticipated reduction in net loss is a positive sign, but the significant decline in sales underscores the need for strategic adjustments and potential new growth initiatives.
Investors and analysts will be closely watching the company’s next moves and financial results.
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