GameStop shares give up rally after retailer reports 29% sales decline, reveals plan to sell more stock

GameStop the video game retailer currently riding another wave of trading enthusiasm spurred on by the meme trader “Roaring Kitty,” showed no signs of an operational turnaround in its dismal first-quarter results.

The video game retailer on Friday posted net sales of $881.8 million for the period, down 29% from $1.237 billion a year prior. The sales decline was steeper than the two Wall Street analysts that cover the stock expected. Their estimates were in a range of $900 million to $1.09 billion per FactSet.

GameStop lost $32.3 million during the quarter, a narrower loss than the $50.5 million suffered in the year-earlier period.

The company also gave an update on its ongoing stock sales, saying it would sell additional stock on top of the 45 million share sale it had announced in May that raised more than $900 million.

The first quarter results came as a surprise. The company — which will be the subject of a YouTube livestream by Keith Gill, better known as “Roaring Kitty” later Friday — was supposed to release results later in the month.

Shares were lower by 10% in premarket trading, giving up a gain of nearly 30% earlier in the morning. The shares rallied 47% Thursday in anticipation of Gill’s livestream, which is set to begin at noon ET. Gill may say something on the livestream regarding his sizable stake.

GameStop has been on a tear since Gill began posting after a roughly three-year hiatus. Quarter to date, the stock is up more than 271%.