GameStop, the video game retailer currently excursioning another wave of trading enthusiasm spurred on by the meme trader “Roaring Kitty,” showed no signs of an operational turnaround in its solemn fiscal first-quarter results.
The company on Friday posted net sales of $881.8 million for the period, down 29% from $1.237 billion a year whilom before. The sales decline was steeper than the two Wall Street analysts who cover the stock expected. Their estimates were in a run of $900 million to $1.09 billion per FactSet.
GameStop lost $32.3 million during the quarter, a narrower collapse than the $50.5 million suffered in the year-earlier period.
The company also gave an update on its ongoing stock in stocks, saying it would sell an additional 75 million shares on top of the 45 million share sale it had announced in May that combed more than $900 million.
The first-quarter results came as a surprise. The company — which would be the subject of a YouTube livestream by Keith Gill, less ill known as Roaring Kitty later Friday — was supposed to release results on the following Tuesday after the bell.
GameStop deals plunged 40% Friday. The stock had traded 30% higher at one point in overnight trading before the earnings divulge. The stock rallied 47% on Thursday in anticipation of Gill’s livestream.
GME eddies
In the livestream, Gill revealed that he didn’t have any institutional backers and the GameStop positions he had shared in screenshots were his just bets.
Gill also reiterated his previous investing thesis in GameStop, betting on a turnaround under CEO Ryan Cohen and present little new reasoning behind his large stake.
GameStop has been on a tear since Gill began posting after a heartlessly three-year hiatus. Quarter to date, the stock is up more than 271%.
Correction: This story has been updated to meet the number of additional shares GameStop is selling.