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TGT - Target News Story

$213 0.6  0.3%

Last Trade - 06/05/21

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £76.02bn
Enterprise Value £79.02bn
Revenue £67.30bn
Position in Universe 121st / 6847

UPDATE 1-GameStop revenue shy of estimates; profits rise, shares up after hours

Tue 23rd March, 2021 8:43pm
(Adds details on results, share movement)
    March 23 (Reuters) - GameStop Corp  GME.N , the video game
retailer at the center of this year's Reddit-driven trading
frenzy, fell short of holiday-quarter revenue estimates on
Tuesday, squeezed by pandemic-led store closures and as more
gamers drifted to online puchases.
    Adjusted net income rose to $90.7 million, or $1.34 per
share from $83.8 million, or $1.27 per share, a year earlier.
    The company's shares rose 5% in extended trading, paring the
losses it made in regular hours.
    GameStop's shares have skyrocketed this year as amateur
traders bet against Wall Street hedge funds that had shorted its
shares, driving the company's valuation to as high as $33.68
billion, more than Best Buy  BBY.N . The stock has become one of
the hottest and most visible "meme stocks" followed on social
media.
    The results come as top shareholder Ryan Cohen, the
billionaire co-founder of online pet supplies retailer Chewy, 
tries to transition the company into an ecommerce business that
can take on big-box retailers such as Target  TGT.N  and Walmart
 WMT.N , as well as technology firms such as Microsoft Corp
 MSFT.O  and Sony Corp  6758.T . 
    GameStop said it would spend 2021 improving the speed of its
delivery services, expanding its product offering and hiring
people experienced in e-commerce.
    Net sales fell to $2.12 billion in the fourth quarter, the
ninth straight quarter of declines. Analysts on average had
expected $2.21 billion, according to IBES data from Refinitiv.

 (Reporting by Tiyashi Datta in Bengaluru; Editing by Sriraj
Kalluvila and David Gregorio)
 ((tiyashi.datta@thomsonreuters.com;))
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