People walk by a GameStop in Manhattan, New York, U.S., December 7, 2021. REUTERS/Andrew Kelly

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)

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