GameStop Corp (NYSE:GME) shares moved lower after Tuesday’s closing bell as the video game retailer reported a year-over-year drop in sales for the first quarter.
Sales for the period ended May 3 were $732.4 million, down from $881.8 million in the year-ago quarter and missing Street forecasts of about $750 million.
On a positive note, the company swung to a profit during the quarter, with net income of $44.8 million, compared to a net loss of $32.3 million for the comparable period a year earlier.
This was in part driven by a decrease in selling, general and administrative expenses to $228.1 million, down from $295.1 million in the prior year’s first quarter.
Cash, cash equivalents, and marketable securities totaled $6.4 billion at the end of the quarter, up from $1 billion in Q1 2024.
Subsequent to the quarter end, GameStop completed the divestiture of its Canadian business on May 4.
Between May 3 and June 10 the company purchased 4,710 Bitcoin for cash, as part of its recently announced Bitcoin treasury strategy.
Shares of GameStop traded down 4% at about $29 following the release of its earnings report.