The last few months have not been kind to games retailer GameStop. The panic and celebration from all the stock inflation is over, and things are very bleak. The onset of the COVID-19 pandemic led to a string of controversies as the retailer tried to force its way into remaining open. GameStop even went so far as to self-label as “essential”. Add into that shipping issues leading to angry customers, and things aren’t looking good. And now, the company has reported another period of losses, totalling more than $100 million.
The company has gained some ground, mostly by taking on debt and excess inventory obligations. Currently, the financial load of inventory is counted at $1.141 billion, compared to $861 million last year. GameStop has been investing in its offerings to improve appeal in nerd culture and hobbies, augmenting gaming income. GameStop ended the financial period with cash and cash equivalents of $1.413 billion. And that total includes new debts of around $46 million added to existing obligations.
Total revenue was $1.297 billion, which is up from $1.005 billion during the same period last year. But with the millions in debt they’ve been saddled with, things aren’t looking great. So when looking at those totals, the loss reported at $105.4 million is staggering.
Over the last couple of years, GameStop has been beset by controversy and issues. Shipping delays and poor organization have plagued the company for months. During that same time, the company has been bleeding talent. Store employees are continually fleeing the company amid low pay and terrible hours. And at the executive level, fight is common. But it’s only the latter of those two that got a $179 million bonus.
The bulk of revenue of the company’s income is from hardware and accessories (i.e. consoles, controllers, and headsets), which brought in a total of $669.9 million. That total accounts for 51.7% of their total revenue. The general contraction of the company’s revenue over the years has been hell on their books. The video game giant has been closing stores all over the world, with hundreds of locations already shuttered. Quarterly losses are also common, with the recent $100 million actually being a low total, compared to previous years.