GameStop reported quarterly results that topped analysts’ expectations and said it plans to launch a non-fungible token (NFT) marketplace by the end of its current quarter.
The videogame and electronics retailer lost $158 million, or $2.08 a share, in the quarter ended April 30, compared with a loss of $67 million, or $1.01 a share, in the year-ago quarter.
Sales rose to $1.38 billion, compared to $1.27 billion last year. Hardware sales, which include game consoles and accessories, fell to $673.8 million from $703.5 million in the year-ago period.Software sales rose to $483.7 million from $397.9 million. Sales of collectibles increased to $220.9 million from $175.4 million.
Inventory came in at $918 million at the end of the quarter, compared to $571 million in the year-ago period. GameStop said the increase reflected its ongoing focus to improve in-stock levels “to meet increased customer demand and offset supply-chain headwinds.”
The company, which launched a digital wallet for cryptocurrencies and non-fungible tokens in April, said it is on track it on track with plans to launch an NFT marketplace in its current quarter. The wallet will enable transactions on the marketplace, according to GameStop.
GameStop ended the quarter with cash and equivalents of $1.035 billion as well as no debt except for a low-interest, unsecured term loan associated with the French government’s response to COVID-19.