GAMESTOP CORP. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)

The following discussion should be read in conjunction with the information contained in the Condensed Consolidated Financial Statements, including the notes set forth in Item 1, Part I of this Form 10-Q. Statements regarding future economic performance, management’s plans and objectives, and assumptions related to the foregoing included in management’s consideration and analysis of financial condition and results of operations constitute forward-looking statements. These statements are only predictions based on current expectations and assumptions and are subject to known and unknown risks, uncertainties and uncertainties regarding the actual results, levels of activity, performance or achievements of the Company or the industry in future years. involves other factors that can make it very different. activities, performance or results expressed or implied by such forward-looking statements; All forward-looking statements contained in this Form 10-Q are based on information available as of the date of filing this Form 10-Q, and we update these forward-looking statements for any reason. or under no obligation to correct. Whether or not as a result of new information, future events or otherwise after the date of this Form 10-Q, except as required by law. You should not place undue reliance on these forward-looking statements. Forward-looking statements involve a number of risks and uncertainties. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Certain factors that could cause actual results to differ materially from these forward-looking statements accompany such statements and are described in our 2021 Annual Report on Form 10-K. . II, Item 1A, “Risk Factors” of this Form 10-Q, First Quarterly 2022 Quarterly Report on Form 10-Q, and Second Quarterly 2022 Quarterly Report on Form 10-Q.

Overview

Game Stop Co., Ltd. (“game stop“we”, “our”, “our” or “Company”), Delaware
Founded in 1996, the corporation is a leading specialty retailer offering gaming and entertainment products through its e-commerce properties and thousands of stores.

The Company operates its business in four geographic segments: America, Canada,
Australia When EuropeOur fiscal year consists of 52 or 53 weeks ending on the Saturday closest to the last day of January.Accounting period
January 28, 2023 and fiscal year ended January 29, 2022 Each consists of 52 weeks. All 3 and 9 month periods shown here include 13 and 39 weeks respectively. All references to years, quarters, and months relate to fiscal periods, not calendar periods. Discussions and analyzes of our operating results refer to continuing operations unless otherwise noted. Our business, like many retailers, is seasonal and most of our net sales are realized in the fourth quarter, which includes the holiday season.

business priority

early stage of game stop The transformation took place mainly in 2021 and early 2022. This period was primarily focused on rebuilding and strengthening the company’s declining infrastructure. game stop
Our value proposition, including our enterprise systems, technology capabilities, store leaders and store associates, and our product catalog and product investments.

game stop will enter a new phase of transformation in the second half of 2022. as a result, game stop Achieving profitability in the near future and generating sustainable growth in the long term.

With a focus on cost containment, we are taking the following steps:

• Ensure our cost structure is sustainable relative to revenue, including taking steps to optimize our workforce to operate efficiently and nimbly.

• Improved margins through operational discipline and increased focus on high-margin collectibles and pre-owned categories.

• Carefully expand the size of the market we can serve by expanding our product catalog across PC games, collectibles, consumer electronics, toys, augmented reality, virtual reality and other categories that represent a natural extension of our business. To do.When

• Maintain a superior customer experience supported by a seamless in-store and e-commerce experience with expedited shipping to your customers.

By executing on these priorities, we will be able to deliver compelling experiences for our customers and position ourselves to make real investments in our growth initiatives. It also allows us to maintain a strong balance sheet. In connection with our cost reduction efforts, we expect to see a favorable impact on selling, general and administrative expenses (“SG&A”) in the coming quarters as we pursue profitability. We believe these efforts are essential to achieving sustainable profitability and enabling long-term value creation for our shareholders.

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of May 2022, announced the launch of a no-custody digital asset wallet that allows gamers and others to store, send, receive and spend cryptocurrencies and non-fungible tokens (“NFTs”) across decentralized apps.of July 2022, launched the NFT Marketplace to allow gamers, creators, collectors, and others to buy, sell, and trade NFTs. Our NFT His Marketplace allows parties to own digital assets represented and protected on the blockchain and enables parties to connect and transact with their own digital asset wallets .during the year November 2022 We have started integrating the Immutable X blockchain protocol. This will provide customers with access to a wide variety of Web 3 games and NFT game assets.

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