GameStop earnings on deck as C-suite exodus raises strategy concerns

GameStop, the meme stock video game retailer which has had five different CEOs over the past five years, will publish its second quarter earnings after the close of trading.

Sep 6, 2023 - 18:30

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GameStop earnings on deck as C-suite exodus raises strategy concerns

GameStop (GME) - Get Free Report shares edged lower in pre-market trading ahead of the video game retailer's second quarter earnings after the closing bell.

GameStop, which has registered only two profitable quarters in the past three years, even as the 2020 meme stock craze lifted the group's market value to more than $21.4 billion, is expected to post a loss of 14 cents per share for the three months ending in July.

Group revenues are forecast to be largely flat to last year, at $1.14 billion, despite myriad attempts to reboot the group's business model to include the sale of NFTs and the introduction of crypto-based payments.

GameStop, which hasn't held an analysts call in more than two years, said earlier this spring that it would explore further "strategic options", including further store closings and the exit of unprofitable businesses, over the coming months.

GameStop has also weathered a notable exodus of top executive talent, with CFO Diana Saadeh-Jajeh resigning last month, just weeks after the ousting of Matt Furlong, the fifth CEO to depart the Grapevine, Texas based group over the past five years.

Billionaire investor and chairman Ryan Cohen, however, as stuck with the group, buying around $10 million worth of shares in June to take his overall stake to around 12%.

GameStop shares were marked 0.05% lower in pre-market trading to indicate an opening bell price of $19.22 each.