GameStop stock soars after retailer posts first quarterly profit in two years
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GameStop on Tuesday posted a quarterly profit for the first time in two years, finishing out its fiscal year on a high note in the holiday quarter after grappling with sales declines, inventory woes and cash flow pressure. Shares of the company soared more than 45% during after-hours trading. For the quarter ended Jan. 28 , net sales dropped slightly to $2.23 billion from $2.25 billion in last year's fourth quarter. The video game retailer also posted a profit of $48.2 million, or 16 cents a share, compared to a loss of $147.5 million, or 49 cents, a year ago. GameStop did not provide financial guidance and has not done so since the early days of the pandemic. Its results can't be compared with Wall Street estimates because too few analysts cover the company. The retailer had been working to steer itself back to profitability, and got there in part by cutting costs. Selling, general and administrative expenses came in at $453.4 million for the quarter, or 20.4% o