GameStop Corp (GME) 2022 Q2 法說會逐字稿

Good afternoon, and welcome to the GameStop Second Quarter 2022 Earnings Conference Call.

下午好，歡迎來到 GameStop 2022 年第二季度收益電話會議。

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.

請注意，在電話會議期間所作的某些陳述構成了根據經修訂的 1995 年《私人證券訴訟法》的安全港條款所作的前瞻性陳述。此類前瞻性陳述受已知和未知風險和不確定性的影響，可能導致實際結果與此類陳述存在重大差異。這些風險和不確定性在公司的收益新聞稿及其提交給美國證券交易委員會的文件中有所描述。今天的前瞻性陳述是在本次電話會議之日作出的，公司不承擔更新前瞻性陳述的任何義務。

I will now turn the call over to GameStop's CEO, Matt Furlong.

我現在將把電話轉給 GameStop 的首席執行官 Matt Furlong。

Thank you, and good afternoon, everyone. I want to begin by reiterating the deep appreciation we have for our stockholders' unrivaled enthusiasm, passion and support. As we work to transform GameStop, these remain unique tailwinds for us, ones we always recognize and value. I also want to take this opportunity to thank everyone across the organization for bringing continued focus and intensity to our mission, particularly during an active Q2 that represented a transitional quarter for us.

謝謝大家，大家下午好。首先，我想重申我們對股東無與倫比的熱情、熱情和支持的深切感謝。當我們努力改造 GameStop 時，這些對我們來說仍然是獨特的順風，我們始終認可和重視的順風。我還想藉此機會感謝整個組織的每一個人，他們為我們的使命帶來持續的關注和強度，特別是在活躍的第二季度，這對我們來說是一個過渡季度。

Before covering the quarter's specific initiatives and results, I want to provide a high-level update on where we've been and where we're looking to go as our transformation progresses. When our Board began turning over early last year, GameStop was saddled with significant debt, decaying systems, limited employee depth and a host of other issues. This is why we spent the second half of 2021 and the first half of 2022 making up for years of underinvestment in modernizing the business.

在介紹本季度的具體舉措和結果之前，我想提供一個關於我們在哪里以及隨著我們的轉型進展我們希望去哪裡的高級更新。當我們的董事會去年初開始換屆時，GameStop 背負著巨額債務、腐朽的系統、有限的員工深度和許多其他問題。這就是為什麼我們花了 2021 年下半年和 2022 年上半年來彌補多年來對業務現代化的投資不足。

The upshot is we now have a more diversified product catalog, strengthened fulfillment network, improved tech stack and e-commerce presence and fortified corporate infrastructure. Thanks to these improvements, including our SAP implementation, we are able to start focusing on a new set of priorities that include achieving profitability, launching proprietary products, leveraging our brand in new ways and investing further in our stores.

結果是我們現在擁有更多樣化的產品目錄、加強的履行網絡、改進的技術堆棧和電子商務存在以及強化的企業基礎設施。由於這些改進，包括我們的 SAP 實施，我們能夠開始專注於一系列新的優先事項，包括實現盈利、推出專有產品、以新方式利用我們的品牌以及進一步投資於我們的商店。

During Q2, we took steps to support each of these new priorities. With respect to pursuing profitability in the coming quarters, we rightsized corporate expenditures and headcount following a period in which the company had hired more than 600 new individuals. These actions, combined with the elimination of onetime expenses in Q1, contributed to a 14.3% reduction in SG&A. We've done this while improving our e-commerce experience and reducing free shipping to customers to 1 to 3 days. We're going to retain a strong focus on cost containment and continue promoting an ownership mentality across the organization.

在第二季度，我們採取措施支持這些新的優先事項。為了在未來幾個季度實現盈利，我們在公司僱傭了 600 多名新員工之後調整了公司支出和員工人數。這些行動，加上第一季度取消一次性費用，導致 SG&A 減少了 14.3%。我們在改善電子商務體驗並將免費送貨時間縮短至 1 到 3 天的同時做到了這一點。我們將保持對成本控制的強烈關注，並繼續在整個組織中推廣所有權心態。

On the product front, our enhanced tech capabilities allowed us to follow the launch of our digital wallet with the launch of our new marketplace that allows gamers, creators, collectors and others to buy, sell and trade NFTs. The launch of our NFT marketplace supports GameStop's pursuit of long-term growth in the cryptocurrency, NFT and Web 3.0 gaming verticals, all of which we expect to be increasingly relevant for the collectors and gamers of the future.

在產品方面，我們增強的技術能力使我們能夠跟隨我們的數字錢包的推出，推出我們的新市場，允許遊戲玩家、創作者、收藏家和其他人購買、出售和交易 NFT。我們 NFT 市場的推出支持 GameStop 追求加密貨幣、NFT 和 Web 3.0 遊戲垂直領域的長期增長，我們預計所有這些都將與未來的收藏家和遊戲玩家越來越相關。

When it comes to accretive partnerships, we've been actively exploring opportunities to strengthen GameStop's offerings and increase brand visibility. We're building on the momentum established by our previously disclosed partnerships with organizations like Immutable and with Loopring, whether it be through new relationships that support our commerce business, blockchain group or both. The deal we just announced with FTX is a byproduct of our commerce and blockchain teams working together to establish something unique in the retail world.

在增值合作夥伴關係方面，我們一直在積極探索加強 GameStop 產品和提高品牌知名度的機會。我們正在利用我們先前披露的與 Immutable 和 Loopring 等組織的合作夥伴關係建立的勢頭，無論是通過支持我們的商業業務、區塊鏈集團或兩者的新關係。我們剛剛宣布的與 FTX 的交易是我們的商業和區塊鏈團隊共同努力建立零售世界獨特事物的副產品。

Lastly, when it comes to investing in our stores, we rolled out an improved compensation model for U.S. store leaders. Each of these store leaders is being given a time-based equity grant of $21,000 that vests over 3 years, as well as the opportunity to earn additional compensation every quarter via a performance-based equity grant. In conjunction, we're raising hourly pay for certain store associates. These steps were taken to help us enhance retention and recruitment of passionate, quality talent.

最後，在投資我們的門店時，我們為美國門店負責人推出了改進的薪酬模式。這些商店領導中的每一個都將獲得 21,000 美元的基於時間的股權贈款，該贈款將在 3 年內歸屬，並且有機會通過基於績效的股權贈款每季度獲得額外的補償。同時，我們正在提高某些商店員工的小時工資。採取這些措施是為了幫助我們加強對充滿激情的優質人才的保留和招聘。

When we think about the GameStop of the future, we expect our stores to help us maintain direct connectivity to customers and sustain localized order fulfillment capabilities across more geographies. This is why, even as we continue evolving our e-commerce and digital asset offerings, storage will remain a critical piece of the company's value proposition. Taken together, we believe the aforementioned steps can help us attain profitability in the coming quarters and produce additional revenue growth over the long term.

當我們考慮未來的 GameStop 時，我們希望我們的商店能夠幫助我們保持與客戶的直接聯繫，並在更多地區維持本地化的訂單履行能力。這就是為什麼即使我們繼續發展我們的電子商務和數字資產產品，存儲仍將是公司價值主張的關鍵部分。綜上所述，我們相信上述步驟可以幫助我們在未來幾個季度實現盈利，並在長期內產生額外的收入增長。

Let me now turn to our financial results for Q2. Net sales were $1.136 billion for the quarter compared to $1.183 billion in the prior year's second quarter. Sales attributable to new and expanded brand relationships remained strong. It is also worth noting that sales attributable to collectibles, which is a segment we intend to grow over the long term, were $223.2 million for the quarter, compared to $177.2 million in the prior year's second quarter.

現在讓我談談我們第二季度的財務業績。本季度淨銷售額為 11.36 億美元，而去年第二季度為 11.83 億美元。新的和擴大的品牌關係帶來的銷售依然強勁。還值得注意的是，收藏品的銷售額是我們打算長期增長的一個部分，本季度的銷售額為 2.232 億美元，而去年第二季度為 1.772 億美元。

SG&A was $387.5 million or 34.1% of sales compared to $378.9 million or 32% of sales in last year's second quarter. As noted, we had a strong reduction in SG&A on a sequential basis versus Q1 of this year, and we're taking further steps to reduce SG&A on a go-forward basis. We reported a net loss of $108.7 million or $0.36 per diluted share, compared to a net loss of $61.6 million or a loss per diluted share of $0.21 in the prior year's second quarter. There were no major onetime transformation, transaction or related costs during the period.

SG&A 為 3.875 億美元，佔銷售額的 34.1%，而去年第二季度為 3.789 億美元，佔銷售額的 32%。如前所述，與今年第一季度相比，我們的 SG&A 連續大幅減少，我們正在採取進一步措施來減少 SG&A。我們報告淨虧損 1.087 億美元或每股攤薄收益 0.36 美元，而去年第二季度的淨虧損為 6160 萬美元或攤薄每股虧損 0.21 美元。期內無重大一次性轉型、交易或相關費用。

Turning to the balance sheet. We ended the quarter with cash and cash equivalents of $908.9 million. We continue to maintain a sizable cash position even while investing in inventory to sustain strong in-stock levels and mitigate the full impact of lingering supply chain issues. At the close of the second quarter, we had no borrowings under our ABL facility and no debt, other than a low-interest, unsecured term loan associated with the French government's response to COVID-19.

轉向資產負債表。我們在本季度末的現金和現金等價物為 9.089 億美元。即使在投資庫存以維持強勁的庫存水平並減輕揮之不去的供應鏈問題的全面影響時，我們仍繼續保持可觀的現金頭寸。在第二季度末，除了與法國政府應對 COVID-19 相關的低息、無擔保定期貸款外，我們的 ABL 設施沒有借款，也沒有債務。

Total liabilities compared to the second quarter of last year were down $237.8 million. Capital expenditures for the quarter were $20.5 million, up $7 million from last year's second quarter, reflecting investments in our technology and enterprise systems. We anticipate CapEx will remain at modest levels.

與去年第二季度相比，總負債減少了 2.378 億美元。本季度的資本支出為 2050 萬美元，比去年第二季度增加了 700 萬美元，反映了對我們技術和企業系統的投資。我們預計資本支出將保持在適度水平。

In the second quarter, cash flow from operations was an outflow of $103.4 million, compared to an outflow of $11.5 million during the same period last year. Inventory was $734.8 million at the close of the quarter, compared to $596.4 million at the close of the prior year's second quarter.

第二季度，運營現金流流出 1.034 億美元，而去年同期流出 1150 萬美元。本季度末庫存為 7.348 億美元，而去年第二季度末為 5.964 億美元。

In terms of an outlook, we're not providing formal guidance at this time. It is worth noting, however, that our ongoing engagement with key suppliers is positioning us to receive stronger supply of next-generation consoles in the months ahead.

就前景而言，我們目前不提供正式指導。然而，值得注意的是，我們與主要供應商的持續合作使我們能夠在未來幾個月內獲得更強勁的下一代遊戲機供應。

I want to finish by reinforcing that we're working to accomplish something unprecedented in our industry, transform a legacy brick-and-mortar retailer into a technology-led organization that meets customers' needs through stores, e-commerce properties in both digital marketplaces and new online communities. Our path to becoming a more diversified and tech-centric business is one that obviously carries risk and will take time. This said, we believe GameStop is a much stronger business than it was 18 months ago.

最後，我想強調我們正在努力完成我們行業中前所未有的事情，將傳統的實體零售商轉變為以技術為主導的組織，通過商店和數字市場中的電子商務資產滿足客戶的需求和新的在線社區。我們成為一家更加多元化和以技術為中心的企業的道路顯然是有風險的，而且需要時間。這就是說，我們相信 GameStop 的業務比 18 個月前要強大得多。

I will leave it there for this quarter. We look forward to driving more progress in Q3. Thank you.

我將把它留到本季度。我們期待在第三季度推動更多進展。謝謝你。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。