GameStop Corp. Q3 FY2022 earnings call

• Acknowledged dedication of teams managing stores, fulfillment centers, and e-commerce platforms. - Recapped past efforts in repairing foundation, reestablishing operational intensity, and setting long-term priorities. - Aligned corporate costs through reductions in corporate head count. - Identified overarching priorities of achieving near-term profitability and driving long-term pragmatic growth. - Emphasized maintaining strong cash position for optionality and ability to explore acquisitions. - Noted minimal exposure to digital assets due to risk management efforts. - Discussed financial results for Q3 including sales, SG&A, net loss, and balance sheet details.

Net sales for Q3 were $1.186 billion, down from $1.297 billion in the prior year's third quarter; approximately $50 million of the decline is attributable to FX. Sales from new and expanded brand relationships and collectibles category remained strong. SG&A was $387.9 million (32.7% of sales) compared to $421.5 million (32.5% of sales) in the prior year's third quarter. Net loss was $94.7 million ($0.31 per diluted share) compared to a net loss of $105.4 million ($0.35 per diluted share) in the prior year's third quarter. Cash, cash equivalents and marketable securities ended the quarter at $1.042 billion. Inventory was $1.131 billion at the close of Q3 compared to $1.141 billion in the prior year's third quarter.

The company is not providing formal guidance at this time but reiterates the goal to achieve profitability in the near term.

• Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. - The company has proactively minimized exposure to cryptocurrency risk and does not hold a material balance of any token, though risks associated with the gaming and retail sectors remain.