GameStop Corp, the videogame retailer that has been in the news for its recent stock market surge, has announced a surprising fourth-quarter revenue and profit beat. The company’s shares surged more than 30% in after-hours trading as investors reacted positively to the news.
One of the key reasons for GameStop’s improved performance has been its focus on transforming itself into a digital behemoth.
The company has been working hard to improve its online sales capabilities and reduce costs, including thorough headcount reductions.
For the quarter that ended Jan. 31, GameStop reported a net profit of $48.2 million, a significant improvement over the $147.50 million loss it reported a year earlier. This success was largely due to the company’s focus on cost-cutting measures and its online sales strategy.
In addition to its impressive profit, GameStop also beat analysts’ revenue estimates for the quarter. The company reported quarterly revenue of $2.23 billion, compared to analysts’ average estimates of $2.18 billion, according to Refinitiv.
The company’s strong performance is a welcome relief for investors, who have seen GameStop’s stock price experience significant volatility in recent months. With the company’s focus on digital transformation, GameStop is well-positioned to continue to drive growth in the coming quarters.