GameStop Corp. today released financial results on the company’s Investor Relations platform for the third quarter ended October 30, 2021.

The gaming retailer in the midst of transformation will also host an investor conference call at 5:00 pm ET to review the company’s financial results. This call and any supplemental information can be accessed at GameStop’s investor relations home page.

GMEdd.com Co-Proprietor Rod Alzmann will be live on Bloomberg TV’s Bloomberg Markets What’d You Miss? at 4:30 PM EST to discuss the company’s financial results and ongoing transformation.

THIRD QUARTER OVERVIEW

Net sales were $1.297 billion for the quarter, compared to $1.005 billion in the prior year’s third quarter.

Sales attributable to new and expanded brand relationships, such as Samsung, LG, Razer, Vizio and others, contributed to the Company’s growth in the quarter.

Inventory was $1.141 billion at the close of the quarter, compared to $861 million at the close of the prior year’s third quarter, reflecting the Company’s focus on front-loading investments in inventory to meet increased customer demand and mitigate supply chain issues.

Ended the period with cash and cash equivalents of $1.413 billion as well as no debt other than a $46.2 million low-interest, unsecured term loan associated with the French government’s response to COVID-19.

Established new offices in Seattle, Washington and Boston, Massachusetts, which are technology hubs with established talent markets.

Secured a new $500 million ABL facility, which closed in November just after the end of the third quarter, with improved liquidity and terms, including reduced borrowing costs, lighter covenants and additional flexibility.

WEBCAST AND CONFERENCE CALL INFORMATION

The webcast with management is scheduled for December 8, 2021, at 5:00 p.m. ET to discuss the Company’s third quarter activities and financial results. This call, along with supplemental information, can also be accessed at GameStop’s Investor Relations. The phone number for the call is 877-451-6152 and the confirmation code is 13725350. This webcast will be archived for two months on GameStop’s investor relations website.

Source: GameStop Newsroom, Form 8-k


Read the transcript of GameStop’s Q3 2021 Earnings Conference Call here.

GameStop Corp., today announced that it will report third quarter fiscal 2021 earnings results after the market closes on Wednesday, December 8, 2021.

The gaming retailer in the midst of transformation will host an investor conference call at 5:00 pm ET on the same day to review the company’s financial results. This call and any supplemental information can be accessed at GameStop’s investor relations home page.

WHERE TO TUNE IN

The phone number for the investor conference call is 877-451-6152 and the confirmation code is 13725350. The conference call will be archived for two months on GameStop’s corporate website.

GMEdd.com had hosted livestreams for prior conference calls, as viewership often surpasses what GameStop’s systems can handle.

For Q1 and Q2 2021 Earnings, GameStop streamed the report on their official YouTube channel, which remain the company’s most viewed videos; a testament to the devotion of the company’s retail investor base.

We advise all GameStop investors follow @GMEdd on Twitter for updates.

THE SIGNIFICANCE

This will mark the second earnings call since the departure of former Chief Executive Officer George Sherman and the board overhaul.

While Ryan Cohen announced at the Annual Shareholder’s Meeting that the company does not plan to talk a big game, investors will anticipate some direction or announcements regarding GameStop NFT from the aspiring technology company under new leadership.

The recently instated CEO Matt Furlong, a former Amazon executive, will likely speak during the majority of the conference call, if tradition continues.

Source: GameStop News Room

GameStop has announced a new $500 Million asset-based revolving credit facility with improved terms and liquidity.

GameStop Corp. today announced that it has entered into a new $500 million global asset-based revolving credit facility (“ABL Facility”) with a syndicate of banks. The new five-year ABL Facility, which was oversubscribed, replaces the Company’s existing $420 million facility due in November 2022. 

In addition to delivering enhanced liquidity, the new ABL Facility provides for reduced borrowing costs, lighter covenants and more flexibility. Wells Fargo Bank, N.A. acted as Lead Arranger and will serve as Administrative Agent.

Form 8-k

GameStop Corp.’s latest SEC Form 8-K reveals more information about the asset-based revolving credit facility.

The Credit Agreement provides for an asset-based secured revolving credit facility with a borrowing capacity of $500 million and a maturity date of November 3, 2026, and includes a $50 million swing loan revolving sub-facility, a $50 million Canadian revolving sub-facility, and a $250 million letter of credit sublimit. The Credit Agreement also includes the ability to add a $25 million Australian revolving sub-facility, subject to the completion of certain conditions.

The Credit Agreement replaces the Second Amended and Restated Credit Agreement, dated as of March 25, 2014, by and among GameStop, Bank of America, N.A. and the other lending institutions (listed in the full 8-K). The prior facility was due to expire on November 20, 2022.

Borrowings under the Credit Agreement accrue interest at the election of GameStop at an adjusted LIBOR rate plus an applicable margin (ranging from 1.25% to 1.50%) or an adjusted prime rate plus an applicable margin (ranging from 0.25% to 0.50%). The applicable margin is determined quarterly as a function of GameStop’s average historical excess availability under the facility and is set at 0.50% for prime rate loans and 1.50% for LIBOR rate loans until GameStop’s first day of the calendar quarter commencing on April 1, 2022. 

In addition, GameStop is required to pay a commitment fee of 0.25% for any unused portion of the total commitment under the Credit Agreement.

Source: GameStop News Release, Form 8-K

GameStop Corp.’s latest Form 8-K SEC Filing reveals Executive Vice President and Chief Operating Officer Jenna Owens has departed from the company.

In an SEC filing on October 29th, GameStop Corp. has detailed the departure of the company’s Executive Vice President and Chief Operating Officer Jenna Owens, with the pair having entered into a Separation and Release Agreement. 

The Separation Agreement provides for Ms. Owens’ departure from GameStop, effective October 25, 2021, as the Company’s Executive Vice President and Chief Operating Officer. 

GameStop claims the responsibilities associated with the position are being absorbed by other members of the company’s management team. Owens remains entitled to the following severance benefits in accordance with her existing letter agreement with GameStop: 

(i) six months base pay, 

(ii) an amount equal to the applicable premiums for COBRA continuation coverage for six months and 

(iii) the remaining portion of her sign-on bonus. 

Background

On March 23, 2021, GameStop announced the appointment of Jenna Owens, age 42, as the Company’s Executive Vice President and Chief Operating Officer, effective March 29, 2021. 

Prior to joining GameStop and since 2017, Owens served in a variety of senior roles at Amazon.com, Inc., including Director and General Manager of Distribution and Multi-Channel Fulfillment.

Prior to joining Amazon.com, Inc., Jenna Owens held senior roles at Google, including General Manager of Operations of Google Express from 2012 to 2015 and Head of Operations Efficiency for Americas Ad Sales from 2015 to 2017. 

Owens has also worked in operations and supply chain at McMaster-Carr Industrial Supply Co., and Honeywell Inc. Ms. Owens holds an Interdisciplinary B.A. from Amherst College and an M.B.A. from New York University’s Leonard N. Stern School of Business. 

Jenna Owens’ profile is still live on news.gamestop.com.

GameStop.com’s Leaders page details Jenna Owens’ prior responsibilities at the gaming retailer.¹

As COO, Jenna will be responsible for overseeing functions that include business intelligence, fulfillment, supply chain and store operations. She brings to GameStop approximately two decades of technology, operations, fulfillment, and supply chain experience.

Terms of Employment

Owens entered into a Letter Agreement with GameStop Corp. on March 23, 2021 describing the basic terms of her employment. The Letter Agreement provides that Owens’ starting annual salary would be $200,000 and that she would also be eligible to earn a total of $2,500,000 in sign on bonuses, paid in 24 monthly installments.

The agreement entitled Jenna Owens to a relocation bonus in the amount of $200,000 to assist with the costs of her relocation to the Dallas/Fort Worth area. 

The Letter Agreement also entitled Owens to a number of restricted shares of GameStop’s stock, determined by dividing $9,000,000 by the average closing prices of GameStop’s common stock for the 30 trading days immediately preceding the grant date, detailed in the Form 8-K.

Ms. Owens’ employment was also conditioned on her execution of a non-competition agreement.

Why the sudden exit?

GameStop’s Form 8-K filing does not detail why the company’s Chief Operating Officer has departed, having left on Monday, October 25th. Such is normal for GameStop.

While at GameStop, Owens had controversially introduced the GameStop Operating Principles, asking retail employees to “dramatically improve the speed at which you operate,” and to “stay focused on execution over ideation.”

GameStop’s Operating Principles, as shared on reddit.com/r/GameStop in August.

Although some of these principles would resonate with a tech start-up, they failed to motivate unhappy retail employees, who congregated on Reddit to voice their frustrations.

While the Operating Principles letter was sent under Jenna’s name, some speculate that it wasn’t so black-and-white.

A debate over Jenna Owens’ departure sparked support for the retail-focused COO.

A Redditor under the username ‘Quigonsin’ has an extensive post history on r/GameStop as an employee at the retailer. According to him, the Operating Principles wasn’t Jenna’s writing, and GameStop had simply pinned it on her.

Quigonsin, who claims to have spoken with Owens on numerous occasions, believes that the COO was let go for fighting in brick-and-mortar employees’ favor.

She’s also the only reason we got training hours for new hire keyholders; the new team was gonna stay with zero until she pushed for it. That document definitely wasn’t her.

GMEdd.com has spoken to other verified retail managers who have privately substantiated these claims, adding that Quigonsin and Jenna Owens interacted and had a ‘direct line’.

As Jenna Owens’ responsibilities are now being absorbed by other members of GameStop’s management team per the filing, it remains unclear whether or not GameStop Corp. will recruit for a replacement Chief Operating Officer.

Sources: Form 8-k Departure, Form 8-k Agreement, GameStop Corp. Thirleck on Reddit, Quigonsin on Reddit


¹ After GMEdd.com published this piece, Jenna Owens’ GameStop Leadership Profile was taken down, leading our sources to now point to an archived version.

Customer care was always the focus at Chewy, so GameStop’s increased investments in support for the gaming retailer should be no surprise.

GameStop Corp. today announced that the company plans to hire up to 500 employees at its newly-leased customer service center in Pembroke Pines, Florida.

The new 30,000 square foot facility is expected to be operational by the end of 2021.

First Stop to the moon, Florida

On top of what we saw in the spring, GameStop has reportedly been recruiting vigorously in South Florida, with the company’s very own Kelli Durkin, Senior Vice President Customer Service, sharing a photo of a new billboard via Twitter.

GameStop may finally be embracing their new meme status. How do you do, fellow kids?

The SVP has been interactive with fans on Twitter, sharing selfies at corporate events and around the office.

When Ryan Cohen, GameStop’s Chairman, was asked how he finds his management teams during a 2018 Miami Herald interview, he gave his endorsement for LinkedIn.

We use a special proprietary tool called LinkedIn and we look for people with very relevant experience at companies we respect and we shoot them a message. … We hand-picked these people. They are the best of the best, the Navy Seals of management teams.

Posts searching for talent are rampant on LinkedIn, with a clear emphasis on hiring gamers who have passion.

Justin Margerum is just one of the latest recruiters for the new GameStop.

Why Florida?

Back in May, GMEdd.com speculated in a piece titled GameStop Hints at New Florida Office that the fast-paced e-commerce initiatives warranted the company soon opening a Florida-based call center.

Job postings on GameStop’s website, along with activity on LinkedIn and Twitter from employees, seem to be hinting towards a South Florida-based customer support center for GameStop. [GMEdd.com, May 18th 2021]

GameStop claims that the facility will be an integral part of the Company’s U.S.-based customer care operations.

South Florida is hot for startups

Entrepreneurs are flocking to South Florida to start companies, Kerry Close of Inc.com claims.

The region is emerging as a hotbed for startups, local entrepreneurs say, with 139 companies on the Inc. 5000 list based in the Miami-Fort Lauderdale-Pompano Beach metro area. No one particular industry is flourishing in the region–everything from health technology to media to food boast fast-growing companies.

There are also economic benefits to relocating to South Florida, such as the lack of income tax in the state, and cheaper living costs than can be found many other startup hubs around the country.

While GameStop Corp. isn’t a startup, the transformation story isn’t far from one.

Past Success

It’s worth noting that Chewy started in South Florida and still operates the business from the Fort Lauderdale area.  Chewy employs over 17,000 people nationwide, with 3,000 in South Florida, making it one of the largest locally based employers in the region.

Ryan Cohen co-founded Chewy in 2011. In 2017, Chewy was acquired by PetSmart for $3.35 billion, which was the largest ever acquisition of an e-commerce business at the time.

With an office nearby, GameStop could easily tap into Chewy’s talent pool. GameStop has been recruiting hordes of former Chewy employees, and it is possible that the lack of forced relocation has been a major incentive.

Sources: GameStop News Room, Inc.com, Inc.com, Reddit, Kelli Durkin on Twitter, Margerum on LinkedIn

GameStop Corp. today released financial results on the company’s new Investor Relations platform for the second quarter ended July 31, 2021.

The gaming retailer published condensed and consolidated financial statements for the quarter.

The Company’s Form 10-Q and supplemental information can be found at GameStop’s Investor Relations.

SECOND QUARTER OVERVIEW

Generated net sales of $1.183 billion, compared to $942 million in the prior year’s second quarter.

Ended the period with cash and restricted cash of $1.78 billion.

Ended the period with no long-term debt, other than a $47.5 million low-interest loan associated with the French government’s pandemic response.

Invested in long-term growth initiatives that include expanding the Company’s product catalog, enhancing its fulfillment network capabilities and technology, and adding talent across the organization.

Entered into a lease of a new 530,000 square foot fulfillment center in Reno, Nevada, positioning the Company’s fulfillment network to span both coasts of the continental U.S.

Entered into a lease of a new customer care center in Pembroke Pines, Florida and started building out U.S.-based customer care operations.

THE RELEASE

GameStop’s Earnings Release can be found here:

GameStop News Room, September 08 2021

GameStop’s Q2 2021 Earnings Call can be heard here:

Q2 2021 Gamestop Corp. Earnings Conference Call (YouTube, Webcast)

GameStop’s Form 10-Q can be found here: 

COMMISSION FILE NO. 1-32637   (HTML, IXBRL, RTF, PDF, XLS, XRBL)

Source: GameStop News Room

GameStop Corp., today announced that it will report second quarter fiscal 2021 earnings results after the market closes on Wednesday, September 8, 2021.

The gaming retailer in the midst of transformation will host an investor conference call at 5:00 pm ET on the same day to review the company’s financial results. This call and any supplemental information can be accessed at GameStop’s investor relations home page.

Where to tune in

The phone number for the investor conference call is 877-451-6152 and the confirmation code is 13722703. The conference call will be archived for two months on GameStop’s corporate website.

GMEdd.com has hosted livestreams for prior conference calls, as viewership often surpasses what GameStop’s systems can handle.

We advise all GameStop investors follow @GMEdd on Twitter for updates.

The significance

This will mark the first earnings call since the departure of former CEO George Sherman, so a change of pace is to be expected.

While Ryan Cohen announced at the Annual Shareholder’s Meeting that he does not plan to talk a big game, investors will anticipate some direction from the gaming retailer under new leadership.

The newly instated CEO Matt Furlong, a former Amazon executive, will likely speak during the majority of the conference call, if tradition continues.

Source: GameStop News Room