GameStop Corp. Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Company Overview
  • GameStop continues to transform under new leadership, focusing on customer experience and shareholder value.
  • Efforts over the quarter included bolstering technology capabilities, expanding fulfillment and customer care infrastructure, and strategic inventory investments.
Key Financial Highlights (compared to Q2 FY2020)
  • Net Sales: $1.183 billion, up 25.6% from $942 million.
  • Global Store Fleet: Declined ~9% YoY due to de-densification and COVID-related closures.
  • SG&A:
    • Reported: $378.9 million (32% of sales) vs. $348.2 million (37% of sales).
    • Adjusted: $372.3 million (31.5% of sales) vs. $336.9 million (35.8% of sales).
    • Gained 430 bps of leverage, primarily from store reopenings vs. Q2 2020.
  • Net Loss: $61.6 million or $0.85/share vs. $111.3 million or $1.71/share.
  • Adjusted Net Loss: $55 million or $0.76/share vs. $92 million or $1.42/share.
  • Cash & Restricted Cash: $1.775 billion, up from $775 million YoY.
  • ATM Equity Offering: Raised $1.1 billion, now at ~75.9 million shares outstanding.

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Operator: Greetings, and welcome to GameStop's Second Quarter Fiscal 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded and will be archived for 2 months on GameStop's Investor Relations website. This call will include forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Any such statements should be considered in conjunction with the cautionary statements and the safe harbor statement in the earnings release and risk factors discussed in reports filed with the SEC. GameStop assumes no obligation to update any of these forward-looking statements or information. A reconciliation and other information regarding non-GAAP financial measures discussed on the call can be found in the company's earnings release issued earlier today as well as the Investor section of the GameStop website. Please note that the company will not be hosting a Q&A session as part of today's call. Now I would like to turn the call over to the company's Chief Executive Officer, Matt Furlong. Matthew Furlong: Thank you. It's good to be with everyone today. I want to start by thanking our entire team for all of their hard work, given the pace at which the organization is changing. I've had the chance to meet a number of team members across our stores, fulfillment centers and home office, and I look forward to meeting more in the coming weeks and mo

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