GameStop asks for patience
Video game retailer GameStop lost $105 million in its third quarter, ending Oct. 30, even as the company keeps promising more fruitful days ahead.
Why it matters: GameStop was a failing business, then a meme stock. It’s still unclear if it can be more than that.
- During a call for investors, CEO Matt Furlong said the company was hiring 500 customer service reps, expanding what it sells to include more PC gaming and consumer electronics categories, and boosting its shipping speeds.
- The company is also “exploring emerging opportunities in blockchain, NFT and Web 3.0.”
- Furlong said the company focuses on being customer-first, but a recent Kotaku report indicated that many GameStop store workers say they’re overworked, understaffed and miserable.
Between the lines: For the third straight quarter, the company skipped concluding its earnings call with the traditional Q&A between executives and stock analysts.
- Such sessions can often last 40 minutes or more, as analysts seek clarifications about a company’s business strategy.
- But GameStop’s call was just an eight-minute reading of prepared remarks.
- Its results did not include Black Friday, which tends to bring the peak interest in video game shopping each year.