GameStop Earnings: Another Stinker

On Wednesday afternoon, GameStop (NYSE: GME) announced that sales continued to grow in the first quarter of fiscal 2022, following years of revenue declines. Investors seemed pleased with the news, as GameStop stock jumped 10% on Thursday.

However, GameStop's revenue growth wasn't particularly impressive, and it came at great expense. And while management has been urging investors to focus exclusively on revenue growth, the company's widening losses and cash burn are bad news for shareholders.

GameStop's revenue jumped 18.1% in fiscal 2021 as the gaming specialist began to recover from the COVID-19 pandemic. But by the fourth quarter, revenue growth was already tailing off, with sales up just 6.2% year over year.

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Source Fool.com