GameStop, the video game retailer currently experiencing a surge in trading activity due to the influence of meme trader “Roaring Kitty,” displayed no signs of improvement in its disappointing fiscal first-quarter results.
For the period, the company reported net sales of $881.8 million, a 29% decrease compared to $1.237 billion in the same period last year. This decline in sales was more significant than what the two Wall Street analysts covering the stock had anticipated.
According to FactSet, their estimates ranged from $900 million to $1.09 billion. During the quarter, GameStop incurred a loss of $32.3 million, which was narrower than the $50.5 million loss suffered in the same period the previous year.
Additionally, the company provided an update on its ongoing stock sales, revealing plans to sell an additional 75 million shares in addition to the previously announced 45 million share sale in May, which raised over $900 million.
The first-quarter results came as a surprise, as GameStop was originally scheduled to release them on the following Tuesday after the market closed. However, the company will be the focus of a YouTube livestream by Keith Gill, also known as Roaring Kitty, later on Friday.
As a result of the disappointing results, GameStop shares plummeted by 28% in morning trading on Friday. The stock had briefly surged by 30% in overnight trading prior to the release of the earnings report.
On Thursday, the stock had rallied by 47% in anticipation of Gill’s livestream, which is set to begin at noon ET. Gill may discuss his significant stake in the livestream. Since Gill’s return to posting after a three-year hiatus, GameStop has experienced a remarkable surge. Year-to-date, the stock has increased by over 271%.