Game Stop plans to launch its marketplace for NFTs by the end of the second quarter.
Game Stop swung to a fourth-quarter loss as it continued its turnaround efforts amid supply chain challenges.
The video game retailer cited progress it made in several areas during the year, including widening its product assortment to include a broader set of consumer electronics, PC gaming equipment and refurbished hardware, launching a redesigned app and growing its PowerUp Rewards Pro membership program by 32% on a year-over-year basis to about 5.8 million total members. It also established new and expanded brand relationships, including with PC gaming companies that contributed to sales growth in the quarter.
During the year, Game Stop made long-term investments in its fulfillment network, systems and teams and opened new offices in Seattle, Washington and Boston, Massachusetts, which it said are technology hubs with established talent markets.
Looking to the current year, Game Stop is looking to create new revenue streams. It plans to launch a marketplace for nonfungible tokens, or NFTs, by the end of the second quarter.
On the company’s earnings call, CEO Matt Furlong said the company is still in the initial stages of turning itself into a “customer-obsessed technology company.” He told analysts that GameStop had become such a cyclical business and so capital-starved “that we have had to rebuild it from within.”
“We’ve also had to change the way we assess revenue opportunities by starting to embrace, rather than run from, the new frontiers of gaming,” he said.
Game Stop reported a net loss of $147.5 million, or $1.94 per share, for the period ended Jan. 29, compared with a profit of $80.5 million, or $1.19 per share, in the year-ago period. Adjusted loss per share was $1.86.
On the earnings call, Furlong told analysts the company was affected by supply chain challenges as well as the omicron variant. He said the company decided to absorb higher costs in order to meet customer demand.
Total revenue grew to $2.25 billion compared to $2.12 billion a year ago and $2.19 billion in the fourth quarter of 2019.
For the full fiscal year, Game Stop generated net sales of $6.011 billion for the full fiscal year, compared to $5.090 billion for 20020.
Game Stop ended the fiscal year with $1.271 billion in cash and cash equivalents and $915 million in inventory, compared to $635 million in cash and $602.5 million in inventory at the end of fiscal year 2020.