GameStop Earnings (GME) for the second quarter of 2022

Jim Stop On Wednesday, he said quarterly sales fell and losses widened, as they collapsed through liquidity and bloated inventory.

The company also revealed new partnership With FTX cipher exchange.

The company’s shares rose about 10% in after-hours trading.

In the second fiscal quarter ending July 30, total video game retail sales fell to $1.14 billion from $1.18 billion in the same period last year. Its loss widened to $108.7 million, or 36 cents per share, compared to a loss of $61.6 million, or 21 cents, a year earlier.

GameStop’s results can’t be compared to estimates because very few analysts cover the company.

Inventory swelled to $734.8 million at the end of the quarter. That’s up from $596.4 million at the end of the second quarter of the previous year. The company said in a statement that it intentionally assembled the merchandise to keep pace with customer demand and deal with supply chain challenges.

The retailer has spent heavily on new initiatives, including NFTs. It had $908.9 million in cash and cash equivalents at the end of the quarter — just over half of what it had at the end of the period last year.

The company did not provide a future outlook. No guidance has been provided since the start of the pandemic.

The old traditional video game retailer is trying to adapt its business to the digital world. It has been given new leadership, including Chairman Ryan Cohen, founder of rubbery A former activist investor in bed bath behindand CEO Matt Furlong, A Amazon veteran.

But GameStop struggled to turn a profit, cutting costs and changing leadership. Last month, the company fired its chief financial officer, Mike Ricupero, and Layoffs across departments. The head of the accounting department, Diana Jagah, has risen to the position of the company’s new chief financial officer.

The company’s expenses are down 14% from the first quarter of the year, reflecting those layoffs.

GameStop has been looking for new ways to earn money, including non-fungible tokens. He. She It launched a marketplace for NFT in July, that Open to the public for beta testing. It allows users to connect their digital asset wallets, including the recently launched GameStop Wallet, so they can buy, sell and trade NFTs in exchange for virtual goods.

With overall sales declining, the retailer signaled the growth of some new business. Sales attributable to collectibles increased from $177.2 million in the second quarter of the prior year to $223.2 million most recently.

NFTs trade on FTX, the retailer’s new partner. “In addition to collaborating with FTX on new e-commerce and online marketing initiatives, GameStop will begin carrying FTX gift cards at select stores,” GameStop said in a statement.

The billionaire founded FTX Former Wall Street Trader Sam Bankman Fried30. It has become the lender of last resort to crypto companies that have suffered due to a sharp decline in assets since late last year.

The agreement with FTX seems to play GameStop as meme stock.

The company’s shares experienced sharp fluctuations in value. Over the past year, the shares have swung from $19.39 to $63.92. The company’s stock is down about 36% so far this year, bringing the company’s value to $7.31 billion.

Read GameStop Earnings Statement over here.

This is an evolving story. Check again for updates.