GameStop has shared its first earnings report since it became the subject of an international stock market frenzy earlier this year.
The company’s earnings report took place on Tuesday, March 23, and presented GameStop’s financial performance for the fiscal year 2020. Overall, despite the company’s stock skyrocketing earlier this year, net sales for the fourth quarter did not exceed that of 2019. Net sales for the final quarter of 2020 stood at US$2.11billion, compared to the $2.19billion that was tallied during the same period in 2019.
While comparable store sales increased by 6.5 per cent, global e-commerce sales increased by 175 per cent, and represented 34 per cent of the total net sales in the fourth quarter of 2020. This marks a 22 per cent increase from the previous year.
GameSpot’s report also highlighted that the overall debt for the entire fiscal year was reduced by $57million, and the company had $635million in cash, an increase from $513.5million a year ago.
The call did not include its usual Q&A session with CEO George Sherman, but did include an announcement of the company’s new COO, Jenna Owens. Owens will take on her new role starting on March 29. Prior to her shift to GameStop, Owens was most recently the director and general manager for distribution and multi-channel fulfillment at Amazon.
The company also announced two other executive hirings: Neda Pacifico as the new senior vice president of e-commerce, and Ken Suzuki, the new vice president of supply chain systems.
The new appointments follow news that CCO Frank Hamlin would be resigning from his role, effective from March 31. Prior to Hamlin’s resignation, the company announced the resignation of CFO Jim Bell in February. Both resignations are believed to be part of investor Ryan Cohen’s push to transition the business from brick-and-mortar to e-commerce.