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GameStop Corporation (GME+0.11%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $860.3 million from $1,078.3 million in the same quarter the previous year. This decline is attributed to reduced sales across all segments, particularly in hardware and accessories, software, and collectibles.
Gross profit for the quarter was $257.2 million, down from $281.8 million in the previous year. However, gross profit as a percentage of net sales increased to 29.9% from 26.1%, due to a shift to higher-margin product categories.
Selling, general, and administrative expenses decreased to $282.0 million from $296.5 million, reflecting cost reduction efforts, although they represented a higher percentage of net sales.
The company reported an operating loss of $33.4 million for the quarter, compared to a loss of $14.7 million in the previous year. Interest income increased significantly to $54.2 million, driven by higher returns on investments.
Net income for the quarter was $17.4 million, compared to a net loss of $3.1 million in the previous year. The effective income tax rate was 16.3%, influenced by tax expenses related to property sales and audits.
Cash used in operating activities was $16.6 million for the nine months ended November 2, 2024, compared to $192.7 million in the previous year. Cash provided by investing activities was $247.7 million, mainly from the maturity of marketable securities.
The company raised $3,453.8 million through an at-the-market equity offering program during the nine months ended November 2, 2024.
GameStop continues to focus on its strategic priorities, including optimizing its core business and achieving profitability through cost containment and strategic investments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the GameStop Corporation quarterly 10-Q report dated December 10, 2024. To report an error, please email earnings@qz.com.