GameStop (GME), the video game retailer that became a meme stock phenomenon, surged 5% in after-hours trading on Wednesday after reporting an increase in sales and a narrower loss for its latest quarter. The company posted revenue of $1.164 billion in the second quarter, up from $1.136 billion in the year-ago period. Its reported loss narrowed to $2.8 million, compared with a loss of $108.7 million a year ago.
The company also announced that it had entered into a lease agreement for a new fulfillment center in Reno, Nevada, to support its e-commerce operations. GameStop has been trying to transform itself from a brick-and-mortar retailer to an online gaming platform, with the help of activist investor Ryan Cohen, who became its chairman in June.
GameStop did not provide any guidance for the current quarter or the full year, citing the uncertainty related to the COVID-19 pandemic. The company also did not hold an earnings call with analysts and investors, which is unusual for a public company.
American Eagle meets revenue expectations but misses on earnings
American Eagle Outfitters (AEO), the clothing retailer known for its jeans and casual wear, slipped 2.6% in extended trading after reporting mixed results for the second quarter. The company met revenue expectations, with $1.2 billion in sales, but missed on earnings, with 25 cents per share, while analysts expected 16 cents per share.
The company said that its digital sales grew 9% year-over-year, driven by strong demand for its Aerie brand, which offers lingerie and loungewear. However, its store sales declined 4%, reflecting the impact of reduced store hours and capacity limitations due to the pandemic.
The company also raised its annual revenue forecast to $5.5 billion, up from its previous range of $5.1 billion to $5.3 billion, citing its confidence in its brands and products. The company expects to achieve record profitability in the second half of the year.
ChargePoint plunges on revenue miss and layoffs
ChargePoint Holdings (CHPT), the electric vehicle charging infrastructure company, plunged 10% after reporting a revenue miss and issuing a weak guidance for the third quarter. The company reported revenue of $150 million for the second quarter, below analysts’ estimates of $153 million. The company also posted a net loss of $84 million, compared with a net loss of $37 million a year ago.
The company said that it had installed more than 118,000 charging ports globally as of July 31, up 27% year-over-year. It also said that it had expanded its network to Europe and Australia, and partnered with several automakers and fleet operators.
However, the company lowered its revenue outlook for the third quarter to a range of $135 million to $145 million, below analysts’ expectations of $159 million. The company also announced that it would reduce its global workforce by about 10%, or 200 employees, as part of a restructuring plan to improve its operational efficiency and profitability.
C3.ai falls on wider-than-expected loss guidance
C3.ai (AI), the artificial intelligence software company, fell as much as nearly 6% in after-hours trading after forecasting a larger-than-expected operating loss for the fiscal second quarter. The company expects an operating loss of $27 million to $40 million, while analysts anticipated a loss of $20.5 million.
The company also withdrew its previous forecast that it would reach non-GAAP profitability by the end of fiscal 2024, saying that it had decided to invest more in lead generation, branding, market awareness and customer success related to its generative AI solutions.
The company reported better-than-expected results for the first quarter, with a loss of 9 cents per share on revenue of $72.4 million, while analysts expected a loss of 17 cents per share on revenue of $71.6 million. The company said that it had added 11 new customers in the quarter, bringing its total customer count to 89.