GameStop is starting to raise its head. Once the queen of video game and game console sales (before the arrival of the “almighty” Amazon), GameStop has reported profits in its last fiscal quarter, after a bad business streak that has lasted a whopping two years.
Following this rebound in the company’s profits, the value of GameStop’s shares soared by more than 40% in the stock market, according to CNBC. Looking ahead to this year, the company intends to make a series of cuts to curb cost overruns, including in the European market, where it has a shrinking presence.
Matt Furlong, GameStop’s CEO, also stated that it is considering expanding its product range and selling toys, which can provide a higher profit margin for the company. Likewise, it intends to expand its online business selling video games, thus following the path the industry is taking.
With net sales of $2.23 billion, down slightly from the same quarter in 2022 ($2.25 billion), GameStop ended last quarter with a profit of $48.2 million. Last year, GameStop faced losses reaching $147.5 million.
GameStop, which has not provided any financial information since the start of the COVID-19 pandemic, has managed to return to profitability after making a series of cuts, which included layoffs and salary reductions. From an expense of $538.9 million in last year’s quarter, GameStop is down this quarter to $453.4 million.
In 2021, GameStop completely reorganized its management, putting Furlong, who came from working many years at Amazon, as CEO, and Ryan Cohen, the founder of Chewy, as chairman of the board. The company’s layoffs also affected other top company officials, and its CFO was also replaced.