GameStop Corp.
Q3 2022 Earnings Call Transcript

Published: 7 Dec 2022

[Operator:]

Good afternoon, and welcome to the GameStop Third Quarter 2022 Earnings Conference Call. Please note that certain statements made during the call constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties are described in the Company's earnings press release and its filings with the SEC. The forward-looking statements today are made as of the date of this call, and the Company does not undertake any obligation to update the forward-looking statements. I will now turn the call over to GameStop's CEO, Matt Furlong.

[Matt Furlong:]

Good afternoon, everyone. I want to begin by acknowledging the dedication and focus of the teams managing our stores, fulfillment centers and e-commerce platforms. As the holiday season begins, they are going the extra mile and working exceptionally hard to deliver for our customers. I also want to take the opportunity to acknowledge our stockholders who continue to demonstrate unrivaled enthusiasm and support. As we work to transform the Company and do something unprecedented in the retail sector that sustained passion is a major tailwind for us. Similar to last quarter, I'm going to spend some time at the outset of this call, recapping where we've been, where we are now and where we're looking to go. Throughout 2021 and 2022, we were extremely focused on repairing our decayed foundation, reestablishing a culture of operational intensity, and setting the right long-term priorities. This translated to building a strong balance sheet, modernizing a crumbling infrastructure, and putting together teams that are now able to operate with the nimbleness and efficiency our stockholders and customers expect. Today, we're in the process of aligning corporate costs through our go-forward needs after completing the majority of necessary upgrades to our systems, fulfillment capabilities and overall foundation. A large portion of our cost cuts will stem from reductions in corporate headcount that have been made during the back half of this calendar year. In some cases, individuals who helped us complete key initiatives have left on their own accord and are not being replaced. In other cases, we've made the decision to eliminate or streamline parts of the organization where we can leverage the work completed over the past 18 months to operate with increased efficiency. We now have a firm understanding of the resources required to pursue opportunities in gaming as well as high potential growth categories like collectibles and pre-owned businesses. Looking ahead, we have two overarching priorities

[Operator:]