By Alex Veiga

A hefty tax benefit helped drive GameStop’s fiscal fourth-quarter profit sharply higher, but the video-game retailer’s sales declined despite a surge in its online business. The company's latest results fell short of Wall Street’s expectations.

The company, whose stock price soared in January after a social media-fueled frenzy, said Tuesday that it would suspend providing earnings guidance as it focuses on an effort to transform into a more online-focused retailer.

The Grapevine, Texas, company reported a net income of $80.5 million, or $1.19 per share, for the three months ended January 30. That compares with a net income of $21 million, or 32 cents per share, a year earlier.

The latest results include a nearly $70 million tax benefit. Adjusted for that and other one-time items, the company’s earnings amounted to $1.34 per share, versus $1.27 a year earlier.

Revenue fell to $2.12 billion, from $2.19 billion. Analysts were expecting adjusted earnings of $1.35 per share on $2.21 billion in revenue, according to FactSet.

The company said global e-commerce sales made up 34% of net sales in the fourth quarter compared with 12% in the year-ago quarter. As GameStop attempts to transition more of its business online, the company recently named board member Ryan Cohen to spearhead that transition.

GameStop shares were little changed in after-hours trading. They fell 6.6% to $181.75 in the regular trading session.

Share:
More In Business
Sex is a big market for the AI industry. ChatGPT won’t be the first to try to profit from it
OpenAI has announced that ChatGPT will soon engage in "erotica for verified adults." CEO Sam Altman says the company aims to allow more user freedom for adults while setting limits for teens. OpenAI isn't the first to explore sexualized AI, but previous attempts have faced legal and societal challenges. Altman believes OpenAI isn't the "moral police" and wants to differentiate content similar to how Hollywood differentiates R-rated movies. This move could help OpenAI, which is losing money, turn a profit. However, experts express concerns about the impact on real-world relationships and the potential for misuse.
Load More