GameStop Corp (NYSE:GME) is expected to report a loss when it releases first-quarter 2023 results after market close on Wednesday despite surprising investors with a quarterly profit at the end of its 2022 financial year.
The video game retailer has seen its revenue come under pressure due to declining US video game sales, which it has compensated for with cost cutting. Analysts said an overhaul of the meme stock’s loyalty rewards program may also bolster revenue going forward.
Wall Street expects it to post revenue of $1.36 billion for the quarter to end April, down from $1.38 billion in 1Q 2022. Its loss is expected to narrow to $0.12 per share from $0.52 a year earlier, according to Street consensus estimates.
The company’s shares rallied in March after it swung to its first quarterly profit in two years, posting earnings of $0.16 per share in the period ended January 28, compared to a loss of $0.49 per share a year earlier and easily beating Street expectations of a $0.13 per share loss.
Revenue was $2.23 billion, down from $2.25 billion but also beating Street expectations of $2.18 billion. Over the quarter, it slashed selling, general and administrative expenses (SG&A) by 16% to $453 million.
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