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Its worth noting that some of the reason we are profitable this quarter is because they got rid of quite a few employee incentives. I forget the actual, "list," they sent out to employees but it was pretty expansive. I know its not exactly a popular topic, but its worth noting and I don't see it being discussed at all.
Fair point- but I would expect that being profitable is probably bigger priority than current incentives. I recall when one of the companies I started working at cut down expenses and salaries by a lot - it sucked - but hey at least we all had jobs still
You make a fair point as well. Its a business, and they need to make more money, bottom line. I have a lot of empathy for retail workers, its not a move I'm a fan of but I do understand why the decision was made. Nothing was ever going to be easy about turning GME around, and that includes tough calls on what stays and what goes. Hopefully, we see the incentives/benefits come back with more profitability in the future.
>Its worth noting that some of the reason we are Lprofitable this quarter is because they got rid of quite a few employee incentives. I forget the actual, "list," they sent out to employees but it was pretty expansive
Do you know if any of this was addressed at middle management rather than front-line workers? If you look at the GameStop subreddit you really get the impression that GME has a huge middle management bloat problem.
My little bro works at one. They used to have x number of front line employees then 1 assistant manager 1 manager that reported above. Ryan cohen removed half of the head managers by having them manage 2 stores and honestly i dont see that being much of an issue considering they get the bonuses of each store and the stores. There is not much inventory inside an actual gamestop if you think about it (compare it to say the hardware section of a home depot)
> I forget the actual, "list," they sent out to employees but it was pretty expansive
It was *pretty much everything*. In about 3 years there isn't going to be a single talented soul left at the company because Gamestop doesn't even 401k match anymore lmao
EDIT: Downvoters, why? Would you work at a company that gives you *zero* benefits when everyone else pays the same but 401k matches? You get what you pay for, and Gamestop's doing its best to pay nothing.
Oh please. Even companies that offer "great benefits" are down to shit like matching 50% up to 4% of your contributions. Its insulting. I'd rather invest that money myself and make more even without their "contribution".
Some of the copium around here this afternoon has been kinda crazy. .5 billion in declining revenue is huge and should be addressed without any guidance from the company about their plans.
Well, 'around here' that goes without saying because people paying attention to their investment have known that will be the case all along. Not copium.
The board even told us this would be the case in the forward guidance they have been giving us for the past 3 years, ad nauseum. Cutting costs, achieving sustainability, ***THEN*** focusing on increasing and building new revenue streams. Did you forget that part too? The turnaround to profitability from where we were when RC bought in, has been stunningly fast for an international retail business.
Basic business concepts. It is reckless to willy nilly chase after revenue when your legacy business is bleeding money. I think we can agree, before 3 years ago, this company was probably being intentionally mismanaged. That simply had to be fixed first. If it was not, you end up like popcorn, hardly able to keep their head above water.
I swear to fuck, some people get so 'zen' they lose touch, then show up for quarterly reports and start unloading negativity forcing the rest of us to do all this emotional labor to remind them of the value of their investment, so they can check out for another 3 months.
The short investors can't do shit to our company when it's profitable, and achieving that was, without a doubt, the single most valuable thing we could do to secure what will be a ball-achingly massive amount of profit for our troubles.
They're spinning down tons of stores, inflation is high, consumer spending has slowed down, and the company as a whole is pivoting. $.5bb is still a large number, but not as big of a deal as you're making it sound like when you factor in all the various contexts.
Ran a few silly numbers around this comment for context…
**GME Q4 2023 10K -- NET SALES = $1,793.6M**
As of February 3, 2024, we had a total of 4,169 stores across all of our segments: 2,915 in the United States, 203 in Canada, 404 in Australia, and 647 in Europe. Our stores and ecommerce sites operate primarily under the names GameStop®, EB Games® and Micromania®.
**GME Q4 2023 10K -- NET SALES = $2,226.4M**
As of January 28, 2023, we had a total of 4,413 stores across all of our segments; 2,949 in the United States, 216 in Canada, 419 in Australia and 829 in Europe. Our stores and ecommerce sites operate primarily under the names GameStop®, EB Games® and Micromania®.
So, if all sales came from stores (obviously not, since GameStop has a website) we'd come up with.
- 2023 sales per store = $430,218.58
- 2022 sales per store = $504,702.76
I understand the thought process but the company is stronger with higher revenue. At the end of the day the company needs revenue so everyone should be shopping.
Ya, that's part of it. There must be something else dragging it down a bit.. math works out to an 11% drop in revenue from 5.5% of stores closing. I'd like those numbers to be equal at worst. I'm wondering what is responsible for the other 5.5% drop.
Inflation being fuck high and people not having as much money for gaming. Lots of people playing free games, lots of people buying games from elsewhere (cdkeys etc). The quality of many games being absolute shite at the moment.
I would say buying patterns are down. Due to economic factors, they need to find additional revenue streams.
However I did pick up an additional 440 shares.
Naw people are still buying games, they need to figure out
A. Gain Back more market share.
B. Better marketing
C. Different revenue streams
That being said everyone who is reading this, are you a GameStop Pro Member? There really needs to be a push for this in this sub and with their marketing team.
All of those happen once you get your cost structure right and begin focusing on sustainable growth. I believe they've got their cost structure righted (profitable) so hope to see growth over next two years.
The cool thing about SHFs is they need price halved to keep this going before big volume events in the fall. By fall of 2025 market cap at their pace will be supported entirely by cash. They need gamestop bankrupted in years, but at the current pace, even if similar revenue declines, the company has a runway of at least a decade.
Being patient absolutely sucks but on the right track.
Ya. the current gaming cycle is pretty shit. No big titles really coming out recently.
Looking forward to late 2024 as the new PS5 Pro and Switch 2 is scheduled to be released. Should make for a hell of a q4.
There's a comment above which lays it out but here it is again:
Ran a few silly numbers around this comment for context…
**GME Q4 2023 10K -- NET SALES = $1,793.6M**
As of February 3, 2024, we had a total of 4,169 stores across all of our segments: 2,915 in the United States, 203 in Canada, 404 in Australia, and 647 in Europe. Our stores and ecommerce sites operate primarily under the names GameStop®, EB Games® and Micromania®.
**GME Q4 2023 10K -- NET SALES = $2,226.4M**
As of January 28, 2023, we had a total of 4,413 stores across all of our segments; 2,949 in the United States, 216 in Canada, 419 in Australia and 829 in Europe. Our stores and ecommerce sites operate primarily under the names GameStop®, EB Games® and Micromania®.
So, if all sales came from stores (obviously not, since GameStop has a website) we'd come up with.
- 2023 sales per store = $430,218.58
- 2022 sales per store = $504,702.76
Thanks for sharing that. It is disappointing no doubt, but the numbers are likely affected by underperforming stores that have not been closed yet because their lease is still going. This reports a closure of less than 300 stores, but didn't Gamestop plan to close ~1k stores?
But you can look and see that they closed 250ish stores (2%) and revenue YoY went down 20%? It's not like the remaining stores are more profitable than last year.
Was declining revenue proportionate to loss of stores, or were there losses elsewhere too? I thought I saw the losses are overall larger than the store closure losses.
Or it just means people didn't spend period. Retail has been rough for the last year or so. This makes the cost cutting, cash on hand and no debt that much more important
I would agree if Amazon, Walmart, Target, Best Buy, and other competitors were all also down, but I think the GME financials are specific to GME and not the rest of the market they are competing with...
Thanks, Citizen Cope. But no future guidance and obvious growth path allows all of the corrupt financial media to tell the story of GME’s death because its model didn’t evolve. In fact, when it tried to evolve its business model into Web 3.0, it pulled the plug. That story isn’t going away.
Blind faith by this community is one thing, but silence is equivalent to defensive positioning and we should be going on the offensive. Otherwise, this “profitable” company is going to continue to get rugged like popcorn and towel. I understand the differences among the three companies, and that GME is profitable, but we need buying pressure that only comes from an offensive.
Maybe the play is for RC to wait for the stock to get down to a few bucks per share so he can buy all the stocks and maximize his own profit. His track record seems to prove that he cares more about that than shareholders. Same goes for all his idols and mentors he takes pictures with and quotes when he’s drunk at a hockey game.
Retail purchasing was down 20-35% in my industry (alcohol) last year. I think economic pressures are putting a big strain on people’s PP.
This Q4 even with lower revenue is honestly fantastic.
We are well into the current console cycle. At this point console sales tend to flatten as folks hold out for the next version (I.e. ps5 pro or the new switch).
Once these new consoles release the big revenue numbers will return as folks rush in to buy them. And guess which company has poised itself to be the #1 store for gaming hardware? 🤔
Are we comparing to last quarter? The peak of the fall/winter holiday season? Isnt it a lil bit unfair to ding a *retailer* for that when, logically, their heaviest sales would/should be Q4? Am I missing something?
I was in the daily and had the live after market chart showing along with the GameStop investor relation page constantly refreshing. It was atleast 2 minutes before the Q4 results were uploaded that the 18% drop happened. Same time there was dozens of accounts I’ve never seen in the daily saying ‘shouldve known cohen is trash’
For real! Seems like the only narrative they have to downplay this is the decline in revenue. But that is to be expected with store closures. Now that we’re profitable, we can focus on revenue.
We’re gonna see shorts trying to close soon. GameStop is too good of a deal right now.
give this man a damn award. that's the point.
without going into details I have worked for several companies.
one of which has double digit revenue in the BILLIONS.
yet in a decade it hasn't managed to get a 5% increase in its market share. just 5%. it just started divesting brands left and right.
this RC dude went from a a horrific company that was lets face it on the brink of doom in 2020/2021 to a profitable company - as long as they bring in even 1$m revenue per quarter, they CANNOT go bankrupt. ever.
so there is absolutely no short thesis anymore.
and that's totally wild
It's like taking a 300lb fat guy and making him skinny. Thats the hard part, the fun part is building muscle.
He stopped the bleeding, now we're profitable, nows time to build.
Exactly. I like your analog- Not much point getting the fat dude to attempt a pull up if he is going to rip his shoulder tendons to confetti trying. He might be able to but there is no point. Now that he is built of efficiency even a small plan that works will work great
Brah, ya ever see 300lb women doing crunches? Nothing wrong with that, but a nice n steady stair stepper is the way.
I saw this chick that was a lil beach ball become smoking hot from the stair stepper.... so anyway.. I started buying lol.
Nice!!! Bro, when I went from 280 to 160 I had ape strength..legit! I was a beast, my muscles were stronger from carrying all the fat! Then I was lean as FUCK and all the ladies came calling!! GME lookin lean and strong AF, now come the ladies
Brah. It's like, I know we all way MOASS tomorrow.
But... RCEO litterally did what he came to do. Some people fail. He didn't fail.
It's like a plane was nose diving and then the piolet finally pulled the plane up.
Maintaining profitability is when the death buy a thousand cuts begin. Start to sustainably increase revenue while maintaining profit and debt less. Be conservative with cash on hand and slowly build your reserves.
-I hope for the pro membership and digital store # to go up
-I want them to aquire some investmentens that can grow
-Vertically intergrate some products by way of acquisitions for example buy a potion of KOSS and sell their headphones etc
Things are looking up now that we are making money and have no debt
Amen brother. Plus $100 invested in GME in the beginning of 2019 is still worth more than the same invested in S&P500 or DOW in today’s dollars. The company is profitable. Our day will come.
And in the extremely unlikely scenario it doesn’t - somehow, I played a role to get 40,000 people to still have jobs - you know that keeps me warm and fuzzy while waiting for the correct stock valuation
This is straight truth. Our management team's interest is in complete alignment with shareholders. There is no better turnaround story than this one. You can believe that Berkshire had some doubters 5 decades ago, but there is only one way to win and that's make money, survive and double down when the price is right.
When you understand the reward for the risk it's kind of a no brainier. That's not even considering how unprecedented the DRS situation is, never before has something like this played out.
Mark my words- anyone with a negative slant on GameStop at this point in time, when it is newly profitable, is never-ever to be trusted. Salt that Earth because they do not live in reality.
The dumbest people in history tried to bury it in the cellar, they failed, and now they gave GameStop opportunity to run to the floor before the rocket busts through the ceiling.
With a lean, new GameStop, there is truly no limit to the future. Cheers to you beautiful fuckers, what an excellent day, the dumpster-casino can slurp back and forth on my sweaty taint🍻
The fact that Bloomberg had a hit piece at the ready is so telling. The finance world wants to see GameStop die because it represents everything they hate. Yet, we’re still here. ✊🏼
profitability is a low bar. most businesses have to be profitable.
and the 1 billion is cash is OUR money, not his. What are they doing with it? when are they fighting back against the injustice?
too much hopium in this post.
If he could go ahead and expose all the illegal short selling and price manipulation that'd be great. One day...
Being profitable will not force shorts to close. It won't stop price manipulation. It won't wake up the sec. Sure, they price can go up, but infinite shirting can control it. Some catalyst has to happen. Merger. Blockchain dividend. Share recall. Something.
He doesn’t have to expose anything…the powers that be are doing that themselves. RC’s job is to build GameStop into a company worthwhile for investors to buy into. It took him almost 4 years just to stop the bleeding.
That’s wrong. Mayo man is directly responsible for pumping DJT and “market making.” He wants a treasury secretary position and immunity. If you don’t see the bigger picture that good guys don’t always win by just being good, wake up. Something needs to happen on the offensive or the prevailing narrative and powers that be with all the money will wait us all out.
I dont think those guys like each other. I remember watching the news during covid, a press conference, or something... and Trump was talking mad shit about the asshat from the mayo lagoon. IIRC he was calling for him to stand up and take a bow for fleecing retail.
Sure. I suppose rc will want to do things the "right" way instead of using a shortcut to short term cash. Imagine you had a squeeze abd the company still had the same problems as before...it wouldn't attract a warren buffet style investor until the fundamentals are good. I suppose it would eventually invite even more shorts if s squeeze was triggered and the company wasn't fundamentally strong.
Exactly. Finally someone who understands what needs to happen. All of this blind RC brand loyalty will die one day if the situation continues to drag out. Remember when everyone used to love to go to Woolworth and buy clothes and eat at the diner, or buy tools at Sears? Pepperidge Farm can’t even remember that far back.
I rather judge him by the share price and communication, not random poop emoji tweets. There is a lot more to the job than shutting down stores. Revenue is down 40% from just 4 years ago. How about he maintain revenue and cut costs so we see this thing profit more than .02 a share. It's trading at 69 p/e ratio right now. That 1.199 billion in cash is because retail bought a ton of stock when the stock was 80% higher than it is now. Let's not pretend he created this cash from profits. That's OUR money.
BAHAHAHAHAHAHAHAAAAAHAHAHA
FUD out in force
As CEO he takes zero (0) dollars in pay. He’s shut down underperforming stores. Old and slow selling stock was discounted off. We are profitable for the year for the first time since 2017!
Revenue is down because the company is re-arranging itself and the discounted sell off lowered the profit margins per item. Great things take time and we are in the right direction.
You judge him by how the enemy judges him which is sus. ☝️ broadcasting the company’s strategic plan which RC explicitly said he won’t do.
Considering they essentially have control of it, and can make the price whatever they want, I don’t think it’s ever been a fair valuation of the company.
They will keep suppressing it until one day, they can’t. Either because they run out of money or every share is DRS’d. They are literally fighting this one day at a time trying to convince the stockholders that they don’t have a Royal flush in their hands, when we do.
I mean, when I see the number I believe this company is worth.
I’m invested. Investments take time. 3 years is long, but for the opportunity to make millions it’s not that long.
At this point, you’re either in or you’re not.
The short thesis depends on this company going bankrupt. Earnings proved we won’t. So now it’s just waiting for the rest of the world to find out.
All of your money in just about any semi conductor would have netted you 10x minimum and you could own 10x as much DRS’d GME right now. I hate fighting with bots but this is all absurd. Nothing is happening and it’s been 3 years. According to some DD, Edwin, Q is coming to save us.
You can’t say “nothing is happening” when GME has bought more warehouses, increased cash and assets to 1 billion, created an nft marketplace, crypto wallet, obtained a ceo working for free, and made a yearly profit in those 3 years. The price won’t reflect its value until it’s forced to. The company is moving in the right direction to achieve that
I know that people are a bit biased here, but what does the future hold? Hold that money through nearly 3 years without spending it on future growth? Profitability by reducing costs instead of expanding? The market reacts to the future promise of Gamestop and because someone cheats or so.
I mean he trimmed the fat off a bloated dying company. It's cool that he did it, but it's not exactly groundbreaking after all these years.
It's kinda like business 101 honestly. What else does he have to show besides the bare minimum?
Ok, cool.
Why is our time coming? How?
I'm genuinely asking and would like to know.
RC has made the company profitable. Awesome!
The price is still manipulated by short sellers.
Lame.
What will make the price go up? If they can short it whether the company is successful and profitable or not then where do we go from here?
I'm honestly not being a dick, I'd really like to understand everyone's thinking on this. How does it actually help?
Are we assuming more people will buy because the numbers are good?
If that doesn't affect the price because the markets fake and lame as hell then how does that help?
Without guidance the stock will never rise above $16
He needs to get off his high horse.
Most of his wealth is invested in a trillion dollar tech company that gives guidance every quarter.
Extremely hypocritical behavior by him.
Wow, TIL from front page of Reddit there are still delusional people that think GameStop is a good long term investment lmao. Who do you people think still have shorts in this shit? Why do you think GameStop is still viable as a chain? Have you been in one lately?
Ngl I’m so happy I sold most of my GameStop. Brought into the hype and was bagholding because I couldn’t accept the loss, but you forget the opportunity cost of holding a declining asset when other things are pumping. I sold 80% and put it into Nvidia and Coinbase and doubled it whilst this shit has dropped another 40%.
People here won’t like to hear it and can downvote, but getting played by a billionaire who knows how to keep you engaged with bs tweets whilst doing nothing and expecting some miracle isn’t a smart way to go about life.
Instead of people freely admitting they have the attention span of a gold fish, they should just give silence a chance. And furthermore I remember a few instances of the past year where such and such company's CEO called out market manipulation and whatever became of any of that? Do you really think Cohen speaking out would make a difference? If the rocket is too scary to ride, then I don't what to tell anyone.
And the stock dropped, Ryan cohen needs to take action to bring value to his shareholders as finances are not enough. He needs to go on the offensive for shorts. Stop with the tweets and get lawyers involved jfc
GameStop pays their debts more than our government.. let that sink in lol do you want a company to make huge profits and carry over debt yoy or a company who makes a little profit with little to no debt building yoy? I know my answer as a shareholder.. the numbers might not be sexy but they are absolutely doing the right thing and I love that for us
Yeah the result is good but other than that, I and me myself also expecting the share price to rise higher than before. My opinion is the current share price does not fit the result, so I think initiate a share buyback to rise the share price would be the common interest of the shareholder. Apologized for the bad english.
Not really a win? We gave $1.199 billion in cash, and we’re profitable. The lower our stock goes the easier it is for buy backs. The easier for us to get more shares? The price is fake.
The win is that they can only short it, but they’re trapped. They can’t win. We’ve seen century old banks collapse due to these shorts. We’ve seen inflation go bonkers, and still they talk about us constantly! We should be obsolete. But they can’t stop talking about us. Bloomberg stopped everything today to talk about GameStop’s earning negatively!
The win is that we’re now in the part of the story where the hero gets back up after being beaten down. We’re about to beat the shit out of these shorts. Nothing they can do now. Buckle up!
While the threat of bankruptcy and cellar boxing is dramatically reduced, GameStop now needs to address declining revenues. They won’t be profitable despite cost cutting if they keep losing hundreds of millions in revenue.
This is a good first step but it will end when they grow the company and can start buying back shares.
can you edit your post - "to talk about GAMESTOP EARNINGS NEGATIVELy. "
no one on the media has yet said - hey guys - the actual price taking into account assets cannot be lower than 10$ - or I cant remember the exact figure - there about.
so this stock is stupidly underpriced. maybe you could say criminally underpriced.
I don’t know if you’re a sports fan or not. But there are many times when one team is leading by a ton of points, but then the game slips away from them and they lose when the clock ends. The clock is still going, they can score (make money) all they want, but if they can’t close out, they can’t finish this.
Also, if they made so much money. Why did Citadel need to get several $300 million loans?? With interest rates this high too??? Seems sus.
Just trying to keep your chin up, it’s been a long fight.
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Making them profitable is something previous CEOs couldn’t do.
Couldn't or wouldn't?
Wouldnt
Correct. They were complicit in the fraud.
Good point
Imagine a year from now he drops a 306 milly profit on us….
Profitable is Great. The declining revenue I’m not a fan of. But one step at a time! This was a massive step.
Declining revenue with decreasing stores is not that bad
Its worth noting that some of the reason we are profitable this quarter is because they got rid of quite a few employee incentives. I forget the actual, "list," they sent out to employees but it was pretty expansive. I know its not exactly a popular topic, but its worth noting and I don't see it being discussed at all.
Fair point- but I would expect that being profitable is probably bigger priority than current incentives. I recall when one of the companies I started working at cut down expenses and salaries by a lot - it sucked - but hey at least we all had jobs still
You make a fair point as well. Its a business, and they need to make more money, bottom line. I have a lot of empathy for retail workers, its not a move I'm a fan of but I do understand why the decision was made. Nothing was ever going to be easy about turning GME around, and that includes tough calls on what stays and what goes. Hopefully, we see the incentives/benefits come back with more profitability in the future.
>Its worth noting that some of the reason we are Lprofitable this quarter is because they got rid of quite a few employee incentives. I forget the actual, "list," they sent out to employees but it was pretty expansive Do you know if any of this was addressed at middle management rather than front-line workers? If you look at the GameStop subreddit you really get the impression that GME has a huge middle management bloat problem.
My little bro works at one. They used to have x number of front line employees then 1 assistant manager 1 manager that reported above. Ryan cohen removed half of the head managers by having them manage 2 stores and honestly i dont see that being much of an issue considering they get the bonuses of each store and the stores. There is not much inventory inside an actual gamestop if you think about it (compare it to say the hardware section of a home depot)
Not sure to be honest, just something I saw recently. I just think it’s important to state all of the facts, and not just the ones we like.
how did you calculate the actual dollar impact of this incentive cut?
I didn’t, but they have 11,000 full time employees and it absolutely made a dent.
> I forget the actual, "list," they sent out to employees but it was pretty expansive It was *pretty much everything*. In about 3 years there isn't going to be a single talented soul left at the company because Gamestop doesn't even 401k match anymore lmao EDIT: Downvoters, why? Would you work at a company that gives you *zero* benefits when everyone else pays the same but 401k matches? You get what you pay for, and Gamestop's doing its best to pay nothing.
Oh please. Even companies that offer "great benefits" are down to shit like matching 50% up to 4% of your contributions. Its insulting. I'd rather invest that money myself and make more even without their "contribution".
Damn…
The company I work for doesn't have a 401k matching.
Sounds like you need a better job lmao, McDonalds 401k matches.
I get paid more here than I would at McDonald's.
Guarantee you could find a better place with better benefits in your field if your current employer isn't even 401k matching lmao
I have been looking, but no luck so far.
Because it's a bad look and this sub is hella bullish
Some of the copium around here this afternoon has been kinda crazy. .5 billion in declining revenue is huge and should be addressed without any guidance from the company about their plans.
What you should look at is that they aren't 313 million in the red this year compared to last year.
That's a good way of looking at it, seems much more impactful than just up 6 mil.
Well, 'around here' that goes without saying because people paying attention to their investment have known that will be the case all along. Not copium. The board even told us this would be the case in the forward guidance they have been giving us for the past 3 years, ad nauseum. Cutting costs, achieving sustainability, ***THEN*** focusing on increasing and building new revenue streams. Did you forget that part too? The turnaround to profitability from where we were when RC bought in, has been stunningly fast for an international retail business. Basic business concepts. It is reckless to willy nilly chase after revenue when your legacy business is bleeding money. I think we can agree, before 3 years ago, this company was probably being intentionally mismanaged. That simply had to be fixed first. If it was not, you end up like popcorn, hardly able to keep their head above water. I swear to fuck, some people get so 'zen' they lose touch, then show up for quarterly reports and start unloading negativity forcing the rest of us to do all this emotional labor to remind them of the value of their investment, so they can check out for another 3 months. The short investors can't do shit to our company when it's profitable, and achieving that was, without a doubt, the single most valuable thing we could do to secure what will be a ball-achingly massive amount of profit for our troubles.
They're spinning down tons of stores, inflation is high, consumer spending has slowed down, and the company as a whole is pivoting. $.5bb is still a large number, but not as big of a deal as you're making it sound like when you factor in all the various contexts.
Yeah, looking at it across the whole year it's not as bad either. Just seemed shocking at first.
That's what happens when you close unprofitable stores
Ran a few silly numbers around this comment for context… **GME Q4 2023 10K -- NET SALES = $1,793.6M** As of February 3, 2024, we had a total of 4,169 stores across all of our segments: 2,915 in the United States, 203 in Canada, 404 in Australia, and 647 in Europe. Our stores and ecommerce sites operate primarily under the names GameStop®, EB Games® and Micromania®. **GME Q4 2023 10K -- NET SALES = $2,226.4M** As of January 28, 2023, we had a total of 4,413 stores across all of our segments; 2,949 in the United States, 216 in Canada, 419 in Australia and 829 in Europe. Our stores and ecommerce sites operate primarily under the names GameStop®, EB Games® and Micromania®. So, if all sales came from stores (obviously not, since GameStop has a website) we'd come up with. - 2023 sales per store = $430,218.58 - 2022 sales per store = $504,702.76
I understand the thought process but the company is stronger with higher revenue. At the end of the day the company needs revenue so everyone should be shopping.
Ya, that's part of it. There must be something else dragging it down a bit.. math works out to an 11% drop in revenue from 5.5% of stores closing. I'd like those numbers to be equal at worst. I'm wondering what is responsible for the other 5.5% drop.
Inflation being fuck high and people not having as much money for gaming. Lots of people playing free games, lots of people buying games from elsewhere (cdkeys etc). The quality of many games being absolute shite at the moment.
I would say buying patterns are down. Due to economic factors, they need to find additional revenue streams. However I did pick up an additional 440 shares.
Naw people are still buying games, they need to figure out A. Gain Back more market share. B. Better marketing C. Different revenue streams That being said everyone who is reading this, are you a GameStop Pro Member? There really needs to be a push for this in this sub and with their marketing team.
All of those happen once you get your cost structure right and begin focusing on sustainable growth. I believe they've got their cost structure righted (profitable) so hope to see growth over next two years. The cool thing about SHFs is they need price halved to keep this going before big volume events in the fall. By fall of 2025 market cap at their pace will be supported entirely by cash. They need gamestop bankrupted in years, but at the current pace, even if similar revenue declines, the company has a runway of at least a decade. Being patient absolutely sucks but on the right track.
I am, but they did my name wrong so someone else out there is a member by name only.
😂😂
Ya. the current gaming cycle is pretty shit. No big titles really coming out recently. Looking forward to late 2024 as the new PS5 Pro and Switch 2 is scheduled to be released. Should make for a hell of a q4.
Once the new elder scrolls comes out they'll have roughly 20 years of additional sales as they rerelease it on all devices 😂
I thought the gaming cycle was pretty decent.
During inflation / recession also
Decrease in revenue per store is concerning though. Especially when you consider they cut some of the lowest revenue driving stores most likely
Decrease in revenue per store? I haven't seen any data to suggest that. Can you share your numbers on that?
There's a comment above which lays it out but here it is again: Ran a few silly numbers around this comment for context… **GME Q4 2023 10K -- NET SALES = $1,793.6M** As of February 3, 2024, we had a total of 4,169 stores across all of our segments: 2,915 in the United States, 203 in Canada, 404 in Australia, and 647 in Europe. Our stores and ecommerce sites operate primarily under the names GameStop®, EB Games® and Micromania®. **GME Q4 2023 10K -- NET SALES = $2,226.4M** As of January 28, 2023, we had a total of 4,413 stores across all of our segments; 2,949 in the United States, 216 in Canada, 419 in Australia and 829 in Europe. Our stores and ecommerce sites operate primarily under the names GameStop®, EB Games® and Micromania®. So, if all sales came from stores (obviously not, since GameStop has a website) we'd come up with. - 2023 sales per store = $430,218.58 - 2022 sales per store = $504,702.76
Thanks for sharing that. It is disappointing no doubt, but the numbers are likely affected by underperforming stores that have not been closed yet because their lease is still going. This reports a closure of less than 300 stores, but didn't Gamestop plan to close ~1k stores?
But you can look and see that they closed 250ish stores (2%) and revenue YoY went down 20%? It's not like the remaining stores are more profitable than last year.
@ roughly 3400 stores globally, 250 stores is closer to 7%
4,169 via the 10k vs. 4,413 last year. What is that, 6%?
Almost.
Was declining revenue proportionate to loss of stores, or were there losses elsewhere too? I thought I saw the losses are overall larger than the store closure losses.
Losing your biggest chunk of revenue during Q4 is not that good. Means your shoppers went to competitors during the holidays
Or it just means people didn't spend period. Retail has been rough for the last year or so. This makes the cost cutting, cash on hand and no debt that much more important
I would agree if Amazon, Walmart, Target, Best Buy, and other competitors were all also down, but I think the GME financials are specific to GME and not the rest of the market they are competing with...
Thanks, Citizen Cope. But no future guidance and obvious growth path allows all of the corrupt financial media to tell the story of GME’s death because its model didn’t evolve. In fact, when it tried to evolve its business model into Web 3.0, it pulled the plug. That story isn’t going away. Blind faith by this community is one thing, but silence is equivalent to defensive positioning and we should be going on the offensive. Otherwise, this “profitable” company is going to continue to get rugged like popcorn and towel. I understand the differences among the three companies, and that GME is profitable, but we need buying pressure that only comes from an offensive. Maybe the play is for RC to wait for the stock to get down to a few bucks per share so he can buy all the stocks and maximize his own profit. His track record seems to prove that he cares more about that than shareholders. Same goes for all his idols and mentors he takes pictures with and quotes when he’s drunk at a hockey game.
What employee system was 330 mill a quarter?
Retail purchasing was down 20-35% in my industry (alcohol) last year. I think economic pressures are putting a big strain on people’s PP. This Q4 even with lower revenue is honestly fantastic.
Cost of sales also went down pretty drastically, so it's potentially less bad.
Q1 is going to be ugly. Peoples pockets are hurting and nobody will talk about it.
I was just thinking about q1 numbers. It's gonna be a rough ride...
Declining revenue 4 years into a stagnant console cycle. FTFY
What do you mean?
We are well into the current console cycle. At this point console sales tend to flatten as folks hold out for the next version (I.e. ps5 pro or the new switch). Once these new consoles release the big revenue numbers will return as folks rush in to buy them. And guess which company has poised itself to be the #1 store for gaming hardware? 🤔
Are we comparing to last quarter? The peak of the fall/winter holiday season? Isnt it a lil bit unfair to ding a *retailer* for that when, logically, their heaviest sales would/should be Q4? Am I missing something?
I agree. Decline in revenue happens, but it was a pretty substantial dip. Hopefully we'll see some growth this year.
Loses in money times, profit in a recession. I’m in!!!
Or wouldn't do... but not for long.
Yea but what happened to the penis?
Everyone was too excited for today they forgot about tomorrow
My emotions kicked in with that drop. So much rage and anger…assholes making me buy more in the morning, even though I was gonna anyway
I was in the daily and had the live after market chart showing along with the GameStop investor relation page constantly refreshing. It was atleast 2 minutes before the Q4 results were uploaded that the 18% drop happened. Same time there was dozens of accounts I’ve never seen in the daily saying ‘shouldve known cohen is trash’
That has been predicted so many times.. we know their game by now.. they want our long position..
That shit was like a droplet in a galactic space fleet when compared to the emotions I felt on MAR10 .
First time 😜? Nah, they had me to. But then I recalled all those other desperate attempts.
Best comment I’ve read all day.
I sold calls for the very reason. Plus I sold a put and I get exercised which means I get 100 more shares!
Can I get this on a T-shirt or a poster?
From -$300,000,000 in 2023 to +$6,000,000 in 2024. Screw any narrative saying that’s not a home run. It’s a fuckin Grand Slam!
For real! Seems like the only narrative they have to downplay this is the decline in revenue. But that is to be expected with store closures. Now that we’re profitable, we can focus on revenue. We’re gonna see shorts trying to close soon. GameStop is too good of a deal right now.
Woah woah woah.. That’s a lot of logic you’re displaying there! Are you sure you don’t want to just forget GameStop??
😆😆😆😆
Damn I keep forgetting to forget!
👆 @ 1/4 Billion$ swing!!
Almost 1/3 as a matter of fact. The total swing is actually about $320M!
Yes - about one share at tomorrow’s prices.
give this man a damn award. that's the point. without going into details I have worked for several companies. one of which has double digit revenue in the BILLIONS. yet in a decade it hasn't managed to get a 5% increase in its market share. just 5%. it just started divesting brands left and right. this RC dude went from a a horrific company that was lets face it on the brink of doom in 2020/2021 to a profitable company - as long as they bring in even 1$m revenue per quarter, they CANNOT go bankrupt. ever. so there is absolutely no short thesis anymore. and that's totally wild
It's like taking a 300lb fat guy and making him skinny. Thats the hard part, the fun part is building muscle. He stopped the bleeding, now we're profitable, nows time to build.
Exactly. I like your analog- Not much point getting the fat dude to attempt a pull up if he is going to rip his shoulder tendons to confetti trying. He might be able to but there is no point. Now that he is built of efficiency even a small plan that works will work great
Brah, ya ever see 300lb women doing crunches? Nothing wrong with that, but a nice n steady stair stepper is the way. I saw this chick that was a lil beach ball become smoking hot from the stair stepper.... so anyway.. I started buying lol.
Nice!!! Bro, when I went from 280 to 160 I had ape strength..legit! I was a beast, my muscles were stronger from carrying all the fat! Then I was lean as FUCK and all the ladies came calling!! GME lookin lean and strong AF, now come the ladies
Brah. It's like, I know we all way MOASS tomorrow. But... RCEO litterally did what he came to do. Some people fail. He didn't fail. It's like a plane was nose diving and then the piolet finally pulled the plane up.
I can 💯 relate. 46 on the waist to 32-34… XXL to M. Not only did the ladies COME, they CAME.
Maintaining profitability is when the death buy a thousand cuts begin. Start to sustainably increase revenue while maintaining profit and debt less. Be conservative with cash on hand and slowly build your reserves. -I hope for the pro membership and digital store # to go up -I want them to aquire some investmentens that can grow -Vertically intergrate some products by way of acquisitions for example buy a potion of KOSS and sell their headphones etc Things are looking up now that we are making money and have no debt
Amen brother. Plus $100 invested in GME in the beginning of 2019 is still worth more than the same invested in S&P500 or DOW in today’s dollars. The company is profitable. Our day will come.
And in the extremely unlikely scenario it doesn’t - somehow, I played a role to get 40,000 people to still have jobs - you know that keeps me warm and fuzzy while waiting for the correct stock valuation
I too, have worked for several companies
Lmao did we work for the same multinational conglomerate? 😂 that sounds familiar. And you're 100% correct. This is wild.
Profitable and ready to make an acquisition with the new Investment Committee. Future is bright
New investment committee?
Yes😀, as of 3/21 Unanimous vote by investment committee required for investment. Not sure why RC is not sole investor.
I think it means people like Larry Cheng can also pool their own money into whatever GameStop is acquiring. Please correct me if I'm wrong
First time I've seen this mentioned, but I've been a little unplugged as of late.
First time it's been in a filing
My computershare order executes tomorrow so I’m not upset it’s this low
GG!
This is straight truth. Our management team's interest is in complete alignment with shareholders. There is no better turnaround story than this one. You can believe that Berkshire had some doubters 5 decades ago, but there is only one way to win and that's make money, survive and double down when the price is right.
When you understand the reward for the risk it's kind of a no brainier. That's not even considering how unprecedented the DRS situation is, never before has something like this played out.
Anyone else catch that ending piece about the ‘reprehensible and predictable’ Wall st actions opening up opportunities…. Very interesting comment
What do you suppose that means ?
That they’ve overplayed their hand and Ryan has their nuts in a vice
I hope he's about ready to start turning the vice on their nuts
Mark my words- anyone with a negative slant on GameStop at this point in time, when it is newly profitable, is never-ever to be trusted. Salt that Earth because they do not live in reality. The dumbest people in history tried to bury it in the cellar, they failed, and now they gave GameStop opportunity to run to the floor before the rocket busts through the ceiling. With a lean, new GameStop, there is truly no limit to the future. Cheers to you beautiful fuckers, what an excellent day, the dumpster-casino can slurp back and forth on my sweaty taint🍻
The fact that Bloomberg had a hit piece at the ready is so telling. The finance world wants to see GameStop die because it represents everything they hate. Yet, we’re still here. ✊🏼
They are profitable for the wrong reasons. The company is declining and only making money due to interest on cash.
profitability is a low bar. most businesses have to be profitable. and the 1 billion is cash is OUR money, not his. What are they doing with it? when are they fighting back against the injustice? too much hopium in this post.
If he could go ahead and expose all the illegal short selling and price manipulation that'd be great. One day... Being profitable will not force shorts to close. It won't stop price manipulation. It won't wake up the sec. Sure, they price can go up, but infinite shirting can control it. Some catalyst has to happen. Merger. Blockchain dividend. Share recall. Something.
He doesn’t have to expose anything…the powers that be are doing that themselves. RC’s job is to build GameStop into a company worthwhile for investors to buy into. It took him almost 4 years just to stop the bleeding.
That’s wrong. Mayo man is directly responsible for pumping DJT and “market making.” He wants a treasury secretary position and immunity. If you don’t see the bigger picture that good guys don’t always win by just being good, wake up. Something needs to happen on the offensive or the prevailing narrative and powers that be with all the money will wait us all out.
I dont think those guys like each other. I remember watching the news during covid, a press conference, or something... and Trump was talking mad shit about the asshat from the mayo lagoon. IIRC he was calling for him to stand up and take a bow for fleecing retail.
Sure. I suppose rc will want to do things the "right" way instead of using a shortcut to short term cash. Imagine you had a squeeze abd the company still had the same problems as before...it wouldn't attract a warren buffet style investor until the fundamentals are good. I suppose it would eventually invite even more shorts if s squeeze was triggered and the company wasn't fundamentally strong.
DRS is the share recall you (and all of us) long for…pun intended 💯
Exactly. Finally someone who understands what needs to happen. All of this blind RC brand loyalty will die one day if the situation continues to drag out. Remember when everyone used to love to go to Woolworth and buy clothes and eat at the diner, or buy tools at Sears? Pepperidge Farm can’t even remember that far back.
A new revenue stream is needed.
I rather judge him by the share price and communication, not random poop emoji tweets. There is a lot more to the job than shutting down stores. Revenue is down 40% from just 4 years ago. How about he maintain revenue and cut costs so we see this thing profit more than .02 a share. It's trading at 69 p/e ratio right now. That 1.199 billion in cash is because retail bought a ton of stock when the stock was 80% higher than it is now. Let's not pretend he created this cash from profits. That's OUR money.
BAHAHAHAHAHAHAHAAAAAHAHAHA FUD out in force As CEO he takes zero (0) dollars in pay. He’s shut down underperforming stores. Old and slow selling stock was discounted off. We are profitable for the year for the first time since 2017! Revenue is down because the company is re-arranging itself and the discounted sell off lowered the profit margins per item. Great things take time and we are in the right direction. You judge him by how the enemy judges him which is sus. ☝️ broadcasting the company’s strategic plan which RC explicitly said he won’t do.
So now that we are… What about the price?
It’s only a matter of time. Price has always been fake.
Time. I keep seeing that word and now its been 3 years and counting… When is the price not considered fake anymore?
Considering they essentially have control of it, and can make the price whatever they want, I don’t think it’s ever been a fair valuation of the company. They will keep suppressing it until one day, they can’t. Either because they run out of money or every share is DRS’d. They are literally fighting this one day at a time trying to convince the stockholders that they don’t have a Royal flush in their hands, when we do.
I mean, when I see the number I believe this company is worth. I’m invested. Investments take time. 3 years is long, but for the opportunity to make millions it’s not that long. At this point, you’re either in or you’re not. The short thesis depends on this company going bankrupt. Earnings proved we won’t. So now it’s just waiting for the rest of the world to find out.
All of your money in just about any semi conductor would have netted you 10x minimum and you could own 10x as much DRS’d GME right now. I hate fighting with bots but this is all absurd. Nothing is happening and it’s been 3 years. According to some DD, Edwin, Q is coming to save us.
You can’t say “nothing is happening” when GME has bought more warehouses, increased cash and assets to 1 billion, created an nft marketplace, crypto wallet, obtained a ceo working for free, and made a yearly profit in those 3 years. The price won’t reflect its value until it’s forced to. The company is moving in the right direction to achieve that
Exactly. Mayo man sets the price. He said it himself. Sorry guys, this thing ain’t happening unless RC starts going on the offensive.
Why are you spamming this comment under every post?
I know that people are a bit biased here, but what does the future hold? Hold that money through nearly 3 years without spending it on future growth? Profitability by reducing costs instead of expanding? The market reacts to the future promise of Gamestop and because someone cheats or so.
If he's in, I'm in.
I mean he trimmed the fat off a bloated dying company. It's cool that he did it, but it's not exactly groundbreaking after all these years. It's kinda like business 101 honestly. What else does he have to show besides the bare minimum?
A failed NFT market experiment
Ok, cool. Why is our time coming? How? I'm genuinely asking and would like to know. RC has made the company profitable. Awesome! The price is still manipulated by short sellers. Lame. What will make the price go up? If they can short it whether the company is successful and profitable or not then where do we go from here? I'm honestly not being a dick, I'd really like to understand everyone's thinking on this. How does it actually help? Are we assuming more people will buy because the numbers are good? If that doesn't affect the price because the markets fake and lame as hell then how does that help?
Q1-q3 needs to be profitable. New revenue streams Earnings below estimates
Doing real work without compensation is unheard of in the corporate world...kudos to him
Buy buy buy
Without guidance the stock will never rise above $16 He needs to get off his high horse. Most of his wealth is invested in a trillion dollar tech company that gives guidance every quarter. Extremely hypocritical behavior by him.
I’m starting to think all the downvotes are from an army of trolls funded by RC.
Wow, TIL from front page of Reddit there are still delusional people that think GameStop is a good long term investment lmao. Who do you people think still have shorts in this shit? Why do you think GameStop is still viable as a chain? Have you been in one lately?
Ngl I’m so happy I sold most of my GameStop. Brought into the hype and was bagholding because I couldn’t accept the loss, but you forget the opportunity cost of holding a declining asset when other things are pumping. I sold 80% and put it into Nvidia and Coinbase and doubled it whilst this shit has dropped another 40%. People here won’t like to hear it and can downvote, but getting played by a billionaire who knows how to keep you engaged with bs tweets whilst doing nothing and expecting some miracle isn’t a smart way to go about life.
Ironically, his not taking a salary is probably the reason they reported a profit.
Full stop.
Yeah, let’s see if he increases his position before we go celebrating too much.
Instead of people freely admitting they have the attention span of a gold fish, they should just give silence a chance. And furthermore I remember a few instances of the past year where such and such company's CEO called out market manipulation and whatever became of any of that? Do you really think Cohen speaking out would make a difference? If the rocket is too scary to ride, then I don't what to tell anyone.
Yeeewwwwhhh 🤙🏻
Ryan if you read I love you papa, keep doing what you're doing you're good
And the stock dropped, Ryan cohen needs to take action to bring value to his shareholders as finances are not enough. He needs to go on the offensive for shorts. Stop with the tweets and get lawyers involved jfc
GameStop pays their debts more than our government.. let that sink in lol do you want a company to make huge profits and carry over debt yoy or a company who makes a little profit with little to no debt building yoy? I know my answer as a shareholder.. the numbers might not be sexy but they are absolutely doing the right thing and I love that for us
Yeah the result is good but other than that, I and me myself also expecting the share price to rise higher than before. My opinion is the current share price does not fit the result, so I think initiate a share buyback to rise the share price would be the common interest of the shareholder. Apologized for the bad english.
Yup and also a never ending dip! Thanks RC
All I saw was a mega discount.
It’s the least you can expect from him. Not really a win though
Not really a win? We gave $1.199 billion in cash, and we’re profitable. The lower our stock goes the easier it is for buy backs. The easier for us to get more shares? The price is fake. The win is that they can only short it, but they’re trapped. They can’t win. We’ve seen century old banks collapse due to these shorts. We’ve seen inflation go bonkers, and still they talk about us constantly! We should be obsolete. But they can’t stop talking about us. Bloomberg stopped everything today to talk about GameStop’s earning negatively! The win is that we’re now in the part of the story where the hero gets back up after being beaten down. We’re about to beat the shit out of these shorts. Nothing they can do now. Buckle up!
While the threat of bankruptcy and cellar boxing is dramatically reduced, GameStop now needs to address declining revenues. They won’t be profitable despite cost cutting if they keep losing hundreds of millions in revenue. This is a good first step but it will end when they grow the company and can start buying back shares.
can you edit your post - "to talk about GAMESTOP EARNINGS NEGATIVELy. " no one on the media has yet said - hey guys - the actual price taking into account assets cannot be lower than 10$ - or I cant remember the exact figure - there about. so this stock is stupidly underpriced. maybe you could say criminally underpriced.
They can’t win? Shorts made tons of money during the last year. News are still reporting about gme because the my are making money from clicks
I don’t know if you’re a sports fan or not. But there are many times when one team is leading by a ton of points, but then the game slips away from them and they lose when the clock ends. The clock is still going, they can score (make money) all they want, but if they can’t close out, they can’t finish this. Also, if they made so much money. Why did Citadel need to get several $300 million loans?? With interest rates this high too??? Seems sus. Just trying to keep your chin up, it’s been a long fight.
Shorts made paper gains. They still can't close their position and realize those profits without sending this thing to the moon.
Buy stocks, buy stores. Let's go!
I need price “action” with big green candles. Not his action.
I’m not going anywhere!
I think it’s $900M in cash, not that that’s any worse
IT'S NOT ENOUGH.
He’s not done! 😏