For the quarter ended Aug. 1 the Grapevine, Texas, company shrank its net loss to $1.71 a share from $4.15 a share in the year-earlier quarter. The latest adjusted loss from continuing operations was $1.40 a share.
Net sales fell 27% to $942 million from $1.29 billion. Comparable-store sales fell 12.7%.
Analysts surveyed by FactSet were expecting the company to report a GAAP net loss of $1.23 a share, or an adjusted $1.13, on revenue of $1.02 billion.
The same-store sales bettered analysts' estimate of a 21.5% decline.
Gross margin narrowed 4.2 percentage points from a year earlier due to an increased mix of hardware sales, which carry thinner gross-profit margins, GameStop said.
“[The] actions we are taking to optimize the core operations of our business by increasing efficiencies and creating a frictionless digital ecosystem to serve our customers, wherever and whenever they choose to shop, are enabling us to navigate the covid-19 environment while positioning us well for the launch of the next generation of consoles," Chief Executive George Sherman said in a statement.
The company reported global e-commerce sales were nine times the figure in the year-earlier quarter. Coronavirus lockdowns resulted in a 13% reduction in store operating days.
The CEO also pointed out a number of strengths: a 28% reduction in selling, general and administrative expense, $735.1 million in cash on the balance sheet, and a 50% reduction in inventory.
At the end of the quarter, GameStop reported holding $256.3 million of short-term debt and $215.9 million of long-term debt.
In a Securities and Exchange Commission filing RC Ventures disclosed that it held 5.8 million shares of GameStop. That puts it behind only BlackRock (BLK) - Get Report and Fidelity, according to Bloomberg.
GameStop closed Wednesday's trading session down 4.6% at $7.35. At last check after hours the shares were down 12% to $6.45.