This post was originally published on this site
Investing.com — GameStop reported Wednesday wider-than-expected losses in the first quarter as the video game retailer’s ramp-up in investments to boost inventory levels and support its transition into digital assets weighed on growth.
GameStop was flat in afterhours trading following the news.
GameStop (NYSE:GME) reported a net loss of $2.08 a share, more than double the loss of $1.01 a share in same period last year. Revenue rose to $1.38 billion from $1.28 billion a year earlier. Wall Street expected a loss of $1.22 on revenue of $1.27 billion.
Inventory rose to $917.6 million for the quarter, up from $570.9 million in the prior year’s first quarter, reflecting a “continued focus on improving in-stock levels in merchandise to meet increased customer demand and offset supply chain headwinds,” the company said.
Looking ahead, the company said it took steps to support the recent launch of a digital asset wallet to allow gamers and others to store, send, receive and use cryptocurrencies and non-fungible tokens across decentralized apps.
“The wallet extension will enable transactions on GameStop’s NFT marketplace upon its intended launch in the second quarter,” it added.
