GameStop Corp. (NYSE: GME) announced results for the second quarter.
George Sherman, GameStop’s chief executive officer, said, “The second quarter saw strong progress toward our strategic initiatives, fueling an 800% increase in global E-commerce sales, a $133.7 million reduction in SG&A and a significant improvement in our balance sheet with $735.1 million in cash at quarter-end and a 50% reduction in inventory, as compared to the second quarter last year. These achievements combined drove $181.9 million in free cash flow for the quarter. I am extremely proud of our team, and their dedication to our mission, our strategy and safely serving our customers despite operating in an unprecedented environment.”
“We believe 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.”
Mr. Sherman continued, “While the ongoing pandemic continues to create a somewhat uncertain environment in the short term, we are very pleased by the consumer response at GameStop to the few recent video game product introductions and we believe we are ready, with expanded service and payment options, to handle the expected surge in demand and participate in a very significant way in the console launches later this year.”
Net sales amounted to USD 942 Million, a 26.7% shortfall compared to the same period in fiscal 2019. The company delivered USD 133.7 Million reduction in SG&A and USD 200.9 Million reduction in the first six months. The company documented USD 735.1 Million of cash at the end of the quarter. GameStop delivered an 800% increase in global E-commerce sales during the quarter that represents over 20% of total net sales.
Due to uncertainty revolving around the duration and impact of COVID-19, the company has decided to suspend guidance for now.