GameStop's first-quarter fiscal 2024 report, released unexpectedly before the bell on Friday, revealed a decline in net sales compared to the year-ago period. Quarterly net sales amounted to $882 million, down from $1.24 billion, falling short of analysts' expectations of $900 million.
Despite narrowing net losses to $32.3 million or 11 cents per share, compared to last year's $50.5 million or 17 cents per share, the results were slightly wider than analysts had projected.
In a Securities and Exchange Commission (SEC) filing, GameStop announced plans to sell up to 75 million additional shares on top of the 45 million shares it recently sold, raising over $900 million in the process.
Interestingly, GameStop had previously indicated that it would report its first-quarter results after the market closed on June 11. The company's decision not to hold an earnings call after disclosing the results on Friday adds to the intrigue surrounding its recent announcements and contributes to the stock's volatility.
