GameStop Corp (NYSE:GME) stock plunges 18.76% (As on June 8, 11:13:01 AM UTC-4, Source: Google Finance) after the company fired Chief Executive Mike Furlong and said that its board elected activist investor Ryan Cohen as its executive chairman. Selling, general and administrative (“SG&A”) expenses were $345.7 million, or 27.9% of net sales for the period, compared to $452.2 million, or 32.8% of net sales, in the prior year’s first quarter. Net loss was $50.5 million for the period, compared to a net loss of $157.9 million for the prior year’s first quarter. Transition costs related to European restructuring efforts were $14.5 million for the period. For the second quarter, the Company will continue to incur transition charges. Cash, cash equivalents and marketable securities were $1.310 billion at the close of the quarter. Long-term debt remains limited to one low-interest, unsecured term loan associated with the French government’s response to COVID-19.

GME in the first quarter of FY 23 has reported the adjusted loss per share of 14 cents, beating the analysts’ estimates for the adjusted loss per share of 12 cents. The company had reported 10.3 percent fall in the adjusted revenue to $1.24 billion in the first quarter of FY 23, missing the analysts’ estimates for revenue of $1.36 billion. During the three months ended April 29, 2023, net sales in our United States, Canada, and Australia segments decreased by 16.4%, 18.5%, and 8.9%, respectively, compared to the prior year, while net sales in our Europe segment increased by 26.2% compared to the prior year. The decrease in consolidated net sales for the three months ended April 29, 2023 was primarily attributable to the translation impact of a weaker U.S. dollar, a decline in sales from new gaming software releases as a result of fewer significant title launches, a decline in sales of pre-owned software and hardware, and a decline in sales of collectibles. These impacts were partially offset by an increase in sales of new gaming hardware. The increase in Europe net sales was primarily attributable to sales of new gaming hardware driven by decreased supply constraints. During the three months ended April 29, 2023, gross profit decreased $11.2 million, or 3.8%, compared to the prior year. Gross profit as a percentage of net sales increased to 23.2%, compared to 21.7% in the prior year.