GameStop Corp. (GME) shares declined 8.75% in after-hours on Wednesday, September 08, 2021, and closed the daily trading at $181.40. Even in the regular trading session of Wednesday, GME’s stock lost 0.10%. GME shares have risen 2481.82% over the last 12 months, and they have moved down 8.91% in the past week. Over the past three months, the stock has lost 34.29%, while over the past six months, it has declined 24.98%.
Let’s see is there any reason behind its recent loss on Wednesday?
GME recent financial results announcement
On September 08, 2021, GameStop Corp. (GME) released its financial results for the second quarter ended July 31, 2021.
Q2 2021 financial highlights
- GME reported net sales of $1.183 billion in Q2 2021, compared to $942 million in the prior year’s second quarter.
- In Q2 2021, gross profit was $320.9 million compared to $252.2 million in Q2 2020.
- Selling, general and administrative expenses were $378.9 million in Q2 2021 compared to $348.2 million in Q2 2020.
- It suffered a net loss of $61.6 million or loss per basic and diluted share of $0.85 in Q2 2021 compared to a net loss of $111.3 million or loss per basic and diluted share of $1.71 in Q2 2020.
- As of July 31, 2021, the company had total cash and restricted cash of $1.78 billion.
GME rebranding EB Games in Canada
On July 28, 2021, GameStop Corp. (GME) announced its plans to rebrand EB Games in Canada. By the end of this year, EB Games’ Canadian locations and online stores will assume the GameStop brand and name. This decision follows our receipt of feedback from our valued customers and stockholders.
GME expansion of fulfilment network
On July 06, 2021, GameStop Corp (GME) announced the continued expansion of its North American fulfilment network and entry into a lease of a 530,000 square foot facility in Reno, Nevada, which is expected to be operational in 2022. The Company’s new presence in Reno, Nevada will position it to grow product offerings and expedite shipping across the west coast.
GME completed Market Equity Program
On June 22, 2021, GameStop Corp. (GME) completed its previously announced at-the-market equity offering program.
The Company ultimately sold 5,000,000 shares of common stock and generated aggregate gross proceeds before commissions and offering expenses of approximately $1,126,000,000.
GME new appointment
On June 21, 2021, GameStop Corp (GME) appointed Matt Furlong to the Company’s Board of Directors. Coinciding with Mr. Furlong’s appointment, George Sherman has retired from the Board. Five of the six members of the Board remain independent.
Conclusion
The recent financial results were unable to meet the analyst’s expectations and that’s why GME stock faced headwinds on Wednesday. It can do a strong come back in the coming days, based on its recent past developments.
