Published , by Morgan Shaver
Published , by Morgan Shaver
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).
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.