GameStop Corp. Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

  • Quarter Ended: Q3 Fiscal 2020
  • Total Revenue: $1.0 billion, down 30.2% compared to Q3 FY2019
  • Comparable Store Sales: -24.6% YoY
  • Adjusted Net Loss: $34.4 million or $0.53 per share vs. $40.2 million or $0.49 per share in Q3 FY2019
  • GAAP Net Loss: $18.8 million vs. $83.4 million a year ago
  • SG&A Expense: Reduced by $115 million YoY for Q3, $315 million YTD, with ~2/3 expected to be permanent
  • Gross Margin: 27.5%, down from 30.7% in Q3 FY2019 due to increased mix of lower-margin hardware and higher e-commerce costs
  • E-commerce Sales: Up 257% YoY in Q3, representing ~25% of total sales YTD, up from low single digits
  • November Comparable Sales: +16.5% YoY – first positive comp in nearly two years
  • November E-commerce Growth: +352%
  • Store Closures: 461 YTD in 2020; Over 1,000 since 2019 start of optimization strategy
  • Cash Balance: $603 million, up ~$300 million YoY
  • Inventory: $861 million, 33% reduction YoY
  • SG&A Trend: Ongoing reductions from store closures and increased efficiency

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Operator: Greetings, and welcome to the GameStop's Third Quarter 2020 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Eric Cerny, Investor Relations. Thank you, Mr. Cerny, you may begin. Eric Cerny: Thank you, and welcome to GameStop's Third Quarter Fiscal 2020 Earnings Conference Call. 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 statement should be considered in conjunction with the cautionary statements in 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 earnings release issued earlier today as well as the Investors section of our website. With me today are GameStop's Chief Executive Officer, George Sherman; and Chief Financial Officer, Jim Bell. On today's call, George will share insights into our business and strategic framework for the future. Jim will then provide more detail on our financial results and expectations for fiscal 2020. Then, we'll open the call to take your questions. Now I would like to turn the call over to the company's Chief Executive Officer, George

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