Video game retailer GameStop Corp (NYSE: GME) stock released its first-quarter 2024 results early Friday ahead of its scheduled June 11 date.
The company reported net sales of $881.8 million, down from $1.237 billion year-over-year. The net sales total missed a consensus estimate of $995.3 million.
The company reported a loss of 12 cents per share, missing the estimate of a loss of 9 cents per share.
The performance reflects customers transitioning to video games and collectibles online, while the retailer depended on brick-and-mortar stores, according to Reuters.
The gross margin improved by 450 bps to 27.7%. The quarter's net loss was $32.3 million, down from $50.5 million last year.
The company held $1.08 billion in cash and equivalents as of May 4, 2024.
The stock got a boost from the return of Keith Gill, also known as Roaring Kitty, to social media following three years of hush. Gill is known for spearheading the meme stock movement.
GameStop will be the subject of a YouTube livestream by meme trader Gill later Friday.
GameStop also filed a prospectus supplement with the SEC regarding its at-the-market offering program, which allows the sale of up to 75 million shares.
Before this filing, GameStop sold 45 million shares on May 17, generating about $933.4 million in gross proceeds.
The company said it intends to use the net proceeds from the new offering for general corporate purposes, including mergers and acquisition activity.
GameStop stock gained over 78% in the last 12 months. Investors can gain exposure to the stock via iShares Core S&P Mid-Cap ETF (NYSE: IJH) and SPDR MidCap Trust Series I (NYSE: MDY).
Price Action: GME shares traded lower by 16.9% at $38.64 premarket at the last check on Friday.