By Dhirendra Tripathi
Investing.com – GameStop (NYSE:) stock dropped by more than 7% in Thursday’s premarket trading, hit by a lack of guidance from the company even as its first quarter numbers, disclosed a day earlier, provided some hope for the struggling retailer.
Fear of earnings dilution because of the company’s plans to issue 5 million shares from “time to time” added to the negative sentiment.
The earnings of the video games retailer have been keenly awaited the last few quarters given the craze for the stock among the retail investors.
The company said its second quarter sales trends, the only indicator it provided for the ongoing quarter, continue to reflect momentum, with May total sales increasing approximately 27% compared with last year.
It also reported an adjusted net loss for the quarter ended May 1 of $29.4 million or 45 cents per diluted share, compared with a $157.6-million loss or $2.44 per diluted share in the fiscal 2020 first quarter.
Net sales rose by more than a quarter from a year ago period to $1.27 billion, overcoming a nearly 12% reduction in the company’s global store base due to strategic reasons and continued store closures across Europe because of the pandemic.
The company has additionally appointed a new CEO and a CFO, both of whom are Amazon (NASDAQ:) veterans.
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