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GameStop reports 29% drop in sales in 2024 Q1

The logo for GameStop is on a monitor on the floor of the New York Stock Exchange on Wall Street on March 22, 2023. GameStop reported a sales loss of 29% in the first quarter. File Photo by John Angelillo/UPI
The logo for GameStop is on a monitor on the floor of the New York Stock Exchange on Wall Street on March 22, 2023. GameStop reported a sales loss of 29% in the first quarter. File Photo by John Angelillo/UPI | License Photo

June 7 (UPI) -- GameStop stocks sank in pre-trading early Friday as the video game retailer reported a decline in sales in the first quarter, erasing another rally spurred by meme trader Keith Gill.

GameStop reported net sales of 882 million for the first quarter, down 29% from $1.237 billion in the first quarter of 2023.

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It also reported a loss of $32.3 million over the first fiscal quarter. While that number disappointed Wall Street analysts who predicted a smaller loss, it was still better than the $50.5 million deficit it suffered at the same time in 2023.

Selling, general and administrative expenses came in at $295.1 million, or 33.5% of net sales in the first quarter. Those expenses were, $345.7 million in 2023, but made up only 27.9% of net sales in the first quarter last year.

GameStop added it would sell an additional $30 million worth of stocks.

Last month, the company said it completed a $933.4 million equity offering by selling 45 million shares, temporarily boosting GameStop's stocks.

Shares of GameStop were up slightly at the opening of trading after falling nearly 20% in pre-market trading.

The decline largely wiped out gains of up to 47% on Thursday after Gill, who is known online as Roaring Kitty and was a key figure in the meme stock craze in 2021, announced he would livestream at noon.

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On Monday, GameStop shares nearly doubled in pre-market trading afterGill, supposedly showed he had purchased 5 million shares of GameStop stock worth at the time $115.7 million.

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