GameStop Corp (NYSE:GME) shares were up after market close on Wednesday after the internet-famous meme stock posted a less-than-expected 2Q loss.
Net sales were US$1.14 billion for the quarter, compared to $1.18 billion in the prior year’s second quarter, showing a loss of $108.70 million.
Analysts expected revenue of US$1.27 billion, with a year-over-year growth of 7%, plus an earnings per share (EPS) loss of $0.38. Instead, the company saw an EPS loss of $0.35.
READ: GameStop launches NFT marketplace
GameStop said it ended the period with cash and cash equivalents of $908.9 million as well as no debt other than a low-interest, unsecured term loan associated with the French government’s response to COVID-19. Also, video game sales have fallen as consumer sentiment slows on rising inflation.
GameStop stock fell 11.6% in the past week and was down by 4.38% at the closing bell. Year-to-date, GameStop shares are down more than 35%.
GameStop shares closed at US$24.04 but saw an after-hours 9.8% rise to $26.39.
Other news
GameStop also announced that it has entered into a partnership with crypto exchange FTX US. The partnership is intended to introduce more GameStop customers to the FTX community and its marketplaces for digital assets. In addition to working with FTX on new ecommerce and online marketing initiatives, GameStop will begin carrying FTX gift cards in select stores.
During the term of the partnership, GameStop will be FTX’s preferred retail partner in the United States.
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