gme-20211030

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


			☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED OCTOBER 30, 2021


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NO. 1-32637

GameStop Corp.

(Exact name of registrant as specified in its charter)


Delaware		20-2733559
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

625 Westport Parkway		76051
Grapevine,	Texas
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:

(817) 424-2000

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Class A Common Stock

GME

NYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of $.001 par value Class A Common Stock outstanding as of December 1, 2021: 76,350,781

TABLE OF CONTENTS



Part I — FINANCIAL INFORMATION
		Page No.
Item 1.	Financial Statements (unaudited)	1

	Consolidated Balance Sheets — As of October 30, 2021, October 31, 2020 and January 30, 2021	1

	Consolidated Statements of Operations — For the three and nine months ended October 30, 2021 and October 31, 2020	2

	Consolidated Statements of Comprehensive Loss — For the three and nine months ended October 30, 2021 and October 31, 2020	3

	Consolidated Statements of Cash Flows — For the nine months ended October 30, 2021 and October 31, 2020	4

	Consolidated Statements of Stockholders’ Equity — For the three and nine months ended October 30, 2021 and October 31, 2020	5

	Notes to Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21

Item 4.	Controls and Procedures	21

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	21

Item 1A.	Risk Factors	21

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

Item 3.	Defaults Upon Senior Securities	32

Item 4.	Mine Safety Disclosures	32

Item 5.	Other Information	32

Item 6.	Exhibits	32

SIGNATURES		34

Table of Contents

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

GAMESTOP CORP.

CONSOLIDATED BALANCE SHEETS

(in millions, except par value per share)

(unaudited)


	October 30, 2021		October 31, 2020		January 30, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	1,413.0	$	445.9	$	508.5
Restricted cash	39.5		140.7		110.0
Receivables, net	83.4		77.6		105.3
Merchandise inventories	1,140.9		861.0		602.5
Prepaid expenses and other current assets	236.3		126.7		224.9
Total current assets	2,913.1		1,651.9		1,551.2
Property and equipment, net of accumulated depreciation of $1,122.0, $1,175.3 and $1,117.7, respectively	179.6		193.0		201.2
Operating lease right-of-use assets	615.8		666.7		662.1
Deferred income taxes	—		29.2		—
Long-term restricted cash	15.6		16.0		16.5
Other noncurrent assets	37.9		44.6		41.6
Total assets	$	3,762.0	$	2,601.4	$	2,472.6

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	711.5	$	440.2	$	341.8
Accrued liabilities and other current liabilities	608.5		654.1		626.8
Current portion of operating lease liabilities	211.9		212.9		227.4
Short-term debt, including current portion of long-term debt, net	1.4		244.5		121.7
Borrowings under revolving line of credit	—		25.0		25.0
Total current liabilities	1,533.3		1,576.7		1,342.7
Long-term debt, net	44.8		216.0		216.0
Operating lease liabilities	409.7		456.7		456.7
Other long-term liabilities	19.3		19.8		20.5
Total liabilities	2,007.1		2,269.2		2,035.9
Stockholders’ equity:
Class A common stock — $.001 par value; 300 shares authorized; 75.9, 65.2 and 65.3 shares issued and outstanding, respectively	0.1		0.1		0.1
Additional paid-in capital	1,567.9		5.1		11.0
Accumulated other comprehensive loss	(54.2)		(67.4)		(49.3)
Retained earnings	241.1		394.4		474.9
Total stockholders’ equity	1,754.9		332.2		436.7
Total liabilities and stockholders’ equity	$	3,762.0	$	2,601.4	$	2,472.6

See accompanying notes to consolidated financial statements.

Table of Contents

GAMESTOP CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)


	Three Months Ended				Nine Months Ended
	October 30, 2021		October 31, 2020		October 30, 2021		October 31, 2020
Net sales	$	1,296.6	$	1,004.7	$	3,756.8	$	2,967.7
Cost of sales	978.0		728.4		2,787.2		2,156.8
Gross profit	318.6		276.3		969.6		810.9
Selling, general and administrative expenses	421.5		360.4		1,170.7		1,095.1
Asset impairments	—		—		0.6		4.8
Gain on sale of assets	—		(21.1)		—		(32.4)
Operating loss	(102.9)		(63.0)		(201.7)		(256.6)
Interest income	—		(0.3)		(0.2)		(1.6)
Interest expense	0.8		10.0		26.2		25.5
Loss from continuing operations before income taxes	(103.7)		(72.7)		(227.7)		(280.5)
Income tax expense (benefit)	1.7		(53.9)		6.1		14.4
Net loss from continuing operations	(105.4)		(18.8)		(233.8)		(294.9)
Loss from discontinued operations, net of tax	—		—		—		(0.9)
Net loss	$	(105.4)	$	(18.8)	$	(233.8)	$	(295.8)

SEC Form 10-Q filed by Gamestop Corporation