GameStop (GME) is exploring opportunities in blockchain, non-fungible tokens (NFTs), and Web 3.0 gaming.
“We believe our emphasis on the long-term is positioning us to build what will ultimately become a much larger business relative to where we are in 2021,” CEO Matt Furlong CEO said during the video game retailer’s earnings call on Wednesday.
“We’ve also been exploring emerging opportunities in blockchain, NFTs and Web 3.0 gaming,” he said.
The comments came after the company reported its third-quarter 2021 results. Revenue beat consensus estimates while loss per share was larger than expected.
Here are the main metrics from GameStop’s report:
Revenue: $1.30 billion vs. $1.19 billion expected, $1.005 billion Y/Y
Adjusted EPS: -$1.39 vs. -$0.52 expected, -$0.53 Y/Y
Only a few analysts cover the stock. The consensus expectations from the three who rate the company were for an adjusted loss per share of 52 cents, with revenue of $1.19 billion for the third quarter.
GameStop attributed its strong sales to its new and expanded relationships with companies such as Samsung (005930.KS), LG (066570.KS), Razer (RAZFF), and Vizio (VZIO). In the past quarter, GameStop also established new offices in Seattle and Boston, which the company described as “technology hubs with established talent markets.”
The report also noted the retailer’s resilience in weathering persistent global supply chain shortages and disruptions.
“Inventory was $1.141 billion at the close of the quarter, compared to $861 million at the close of the prior year’s third quarter, reflecting the Company’s focus on front-loading investments in inventory to meet increased customer demand and mitigate supply chain issues,” the report reads.
The company is undergoing a turnaround plan towards e-commerce after Ryan Cohen, the co-founder of e-commerce platform Chewy (CHWY), bought an activist stake in GameStop and then joined the board as Chairman in June.
Cohen, known as “Papa Cohen” by the retail trader crowd, has revealed few details about his strategy.
“We are trying to do something that nobody in the retail space has ever done,” Cohen said at the company’s annual meeting this past June.
Jenna Owens, also a former Amazon executive, was tapped by Cohen for the COO position. She spent only seven months at the job before leaving the company in October.
Year-to-date GameStop is up around 835%, thanks to continued support from the retail community.
The stock closed at $247 on November 19. It has since then come down more than 25% along with other risky equities and growth stocks during recent market volatility.
As with past conference calls following the results, no analyst questions will be taken.
On Wednesday a new “meme” stock inspired exchange traded fund began trading. The MEME ETF launched by Roundhill Investments holds 25 equities, including GameStop and AMC (AMC), and is rebalanced every two weeks.