March 17, 2022
(Reuters) – GameStop Corp on Thursday reported a net loss for the fourth quarter as the video game retailer spent more to pivot its largely brick-and-mortar business towards e-commerce.
Shares of the company fell 7% in extended trading.
The Grapevine, Texas-based company had been battered due to store closures after the COVID-19 pandemic hit, forcing it to move toward digital sales.
As the company ramps spending to hire talent, expand capacity, grow its e-commerce presence and also innovate new products such as its NFT marketplace, it has seen costs increase during the quarter.
The company posted a net loss of $147.5 million, or $1.94 per share, during the quarter, compared with a profit of $80.5 million, or $1.19 per share, a year earlier.
(Reporting by Tiyashi Datta and Chavi Mehta in Bengaluru; Editing by Shailesh Kuber)