GME
GameStop Corp
Q4 2024 Report
GameStop Corp (GME) Q4 2024 Financial Results: Strong Recovery Fuels Optimism...
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Executive Summary
GameStop Corp (GME) reported its Q2 2024 results, revealing a complex landscape marked by both challenges and growth opportunities. The company's revenue reached $798.3 million, reflecting a year-over-year decrease of 31.41% and a quarter-over-quarter decline of 9.47%. However, despite these numbers, net income significantly surged to $14.8 million, showcasing a staggering increase of 628.57% year over year, indicating improved operational efficiency and potential stabilization.
This quarter also observed operational challenges with gross profits slipping to $248.8 million, though a sequential rise was noted, hinting at cost control measures by management. With a robust cash position of $4.19 billion and a favorable current ratio of 6.23, GameStop appears to be strategically positioned for potential recovery and growth, albeit underpinned by a volatile market environment. Investors are encouraged to monitor upcoming strategic initiatives and industry dynamics closely as GameStop continues to navigate its transformation in a post-pandemic retail landscape.
Key Performance Indicators
Revenue
798.30M
QoQ: -9.47% | YoY:-31.41%
Gross Profit
248.80M
31.17% margin
QoQ: 1.76% | YoY:-18.67%
Operating Income
-22.00M
QoQ: 56.52% | YoY:-32.53%
Net Income
14.80M
QoQ: 145.82% | YoY:628.57%
EPS
0.04
QoQ: 134.82% | YoY:516.30%
Revenue Trend
Margin Analysis
Key Insights
1. **Revenue Analysis**: GameStop's revenue for Q2 2024 stood at $798.3 million, down 31.41% year-over-year and down 9.47% quarter-over-quarter. This decline stems partly from shifting consumer spending habits. 2. **Profitability Metrics**: The gross profit margin improved sequentially to 31.17%, up from 27.73%, reflecting effective cost management in the face of declining sales. 3. **Net Income**: The net income rose to $14.8 million, with a remarkable year-over-year increase of 628.57% a...