GameStop (GME) CEO believes the company can 'attain profitability' in coming quarters

One of the company's top priorities moving forward is attaining profitability and "producing additional revenue growth over the long term."

During the GameStop (GME) Q2 2022 earnings call, CEO Matt Furlong expressed the belief that the company can “attain profitability” in the coming quarters. Among the steps mentioned to help achieve this goal include continuing to evolve the company’s e-commerce and digital asset offerings, though storage will also “remain a critical piece of the company’s value proposition.”

The focus on achieving profitability was mentioned a few times during the earnings call as being one of the company’s top priorities alongside things like launching proprietary products and investing further in stores.

In Q2, it’s noted during the call that in regards to pursuing profitability, the company “rightsized corporate expenditures and headcount following a period in which the company had hired more than 600 new individuals.” With this, in addition to eliminating one-time expenses in Q1, the company saw a 14.3 percent reduction in selling, general, and administrative expenses (SG&A).

GameStop (GME) stock showing stock at $24.04 down 4.38 percent.
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As a whole, GameStop seems like it’s on its way towards achieving its profitability goal with the earnings report today showing things like a 26 percent revenue growth in collectibles in Q2 2022, and GameStop (GME) ending Q2 2022 with $908.9 million on the balance sheet. 

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Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.

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