GameStop just posted its first-quarter 2021 financial results, and it was sort of a mixed bag.
First the positive. Net sales are up 25% from the same period in 2020, up to $1.28 billion from $1.02 billion. A lot of that came thanks to new hardware sales, which account for over 55% of all sales (or $703.5 million).
Software and games accounted for a little over 31% of sales at $397.9 million while collectible items accounted for just under 14% at $175.4 million.
While sales were up overall, GameStop is still taking losses year over year, although those losses have shrunk significantly. Net losses for Q1 2021 totaled $40.8 million compared to $108 million last year, and adjusted operating losses were down to $21.6 million.
Still, GameStop is trending towards profitability and the company still has a lot of cash on hand thanks to the recent sale of 3.5 million common shares. In fact, the company plans to sell 5 million more shares at market value in the future, although that'll depend on the market.
"GameStop is continuing to suspend guidance at this time; however, it believes total net sales is the most appropriate metric to evaluate performance at this time," GameStop added. "The Company’s second-quarter sales trends continue to reflect momentum, with May total sales increasing approximately 27 percent compared to last year."
In addition to announcing its financial results, GameStop also revealed two new executives to replace some of the top leadership roles that were vacated earlier this year. Matt Furlong has signed on as GameStop's CEO while Mike Recupero will serve as chief financial officer. Both come from "senior roles" over at Amazon where they "oversaw various growth initiatives during their respective tenures."
GameStop's second-quarter results are likely to be even better thanks to an expected surge of customers on June 15. That's rumored to be due to whatever Nintendo has planned for E3, which we'll find out about on Tuesday.