GameStop Corp. (NYSE:GME) stock rose 9.25% (As on December 8, 11:35:12 AM UTC-4, Source: Google Finance) though the company posted lower than expected results for the third quarter of FY 22 hurt by a dearth of new hit game releases and a pullback in spending against the backdrop of decades-high inflation. Sales attributable to new and expanded brand relationships were strong in the quarter, while sales in the collectibles category remained strong on a year-to-date basis. Selling, general and administrative expenses (“SG&A”) were $387.9 million, or 32.7% of sales, compared to $421.5 million, or 32.5% of sales, in the prior year’s third quarter. Notably, SG&A as a percentage of revenue was down on a sequential basis from 34.1% in Q2 of this year, reflecting the Company’s ongoing cost reduction efforts. Inventory was $1.131 billion at the close of the period, compared to $1.141 billion at the close of the prior year’s third quarter. Cash, cash equivalents and marketable securities were $1.042 billion at the close of the third quarter. Long-term debt remains limited to a low-interest, unsecured term loan associated with the French government’s response to COVID-19.

GME in the third quarter of FY 22 has reported the adjusted loss per share of 31 cents, missing the analysts’ estimates for the adjusted loss per share of 28 cents. The company had reported the adjusted revenue of $1.19 billion in the third quarter of FY 22, missing the analysts’ estimates for revenue of $1.36 billion, according to Refinitiv IBES data.

Amid widening losses and a diminishing cash pile, US video games retailer GameStop is rolling ahead with a partnership with digital asset exchange FTX US with a view to “introduce more GameStop customers to FTX’s community and its marketplaces for digital assets” The partnership announcement follows GameStop’s launch of an NFT marketplace in July in collaboration with Immutable X, which formed part of GameStop’s broader Web3 ambitions. As part of the joint venture, Gamestop will start carrying FTX gift cards in some stores. Two months in from the launch of GameStop NFT, total marketplace volume stands at slightly over US$22mln, according to an unofficial market tracker. The platform has generated around US$443,400 in fees and has over 500 live collections.