Retailer GameStop has reported its financial results for the second quarter. The numbers show that the company has continued to see growth through this quarter, a stark contrast to how the company was performing until recently.
For the three-month period ending on July 31, 2021, GameStop reported that net sales stood at $1.1 billion, a rise of 26 percent. Net losses were down at $61.1 million compared to $111 million for the same period last year.
GameStop explained that this increase in net sales is almost certainly due to the demand for new PS5 and Xbox Series X/S consoles. Nintendo products also continue to sell well, of course, but it’s this new hardware that consumers are eating up as soon as it comes into stock.
The retailer has also outlined the risk factors in its recent financial report, in addition to information on the subject of its wildly varying stock prices. You may remember that the company’s shares were the subject of several huge increases in price earlier this year, the results of a group of Redditors working together to maximize their investments.
GameStop explains its stock price has fluctuated wildly and may continue to do so for some time. While the initial focus on it may have dried up, there are still people getting in on the stock, holding out for when it’s worth the right amount for them to sell.
The company also noted that so much press coverage has led to inaccurate reporting on its stock prices. Whether this means that there is anything suspicious going on or not isn’t clear, but after a thorough investigation, it was found that the group responsible for the market shorts hasn’t done anything wrong.
Finally, moving forward, GameStop plans to increase its product offerings and expand operations to offer more to consumers in the coming months. This could indicate that physical stores will be revamped to offer unique experiences such as eSports and retro-focused locations. This was a plan prior to the pandemic that the retailer was going to move forward with, now though, that may have changed.