GameStop Corp. (NYSE:GME) Q4 2022 Results Conference Call March 21, 2023 5:00 PM ET

Company Participants

Matt Furlong - CEO

Conference Call Participants

Operator

Good afternoon, and welcome to the GameStop Fourth Quarter and Full Year 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 to everyone joining today's call.

I want to begin by thanking all of our employees for their dedication and hard work over the past year. Similarly, I want to thank our customers, partners and stockholders for their continued loyalty and enthusiasm. This continued passion was a strong tailwind for us in 2022 as we pivoted to focus on near-term profitability while pursuing longer-term sustainable growth.

Before discussing our initiatives and results in detail, I want to take a moment to shed some light on where we've been, where we are and where we're looking to go. The past two years have obviously been transformative for GameStop. It's critical to provide context as to why we're a stronger and increasingly efficient business today, one that is well positioned in an otherwise challenged retail sector.

At the start of 2021, prior to any major changes to top GameStop, the Company had burdensome debt, dwindling cash, strained relationships with vendors and no meaningful stockholders in the Boardroom. The company's future was very uncertain and market participants predicted we were heading for bankruptcy. Throughout 2021, we refreshed our Board, rebuilt our management team, recapitalized the balance sheet and paid down debt. We also established accretive partnerships, fortified our infrastructure and explored growth opportunities, some of which materialized and some of which did not.

As we began fiscal year 2022, our operating environment dramatically changed due to the onset of inflation, rising interest rates and material macro headwinds. In keeping with our ownership mentality, we considered the implications for GameStop and our stockholders. Rather than standstill, we pivoted last year to cut costs, optimize inventory and focus on enhancing the customer experience. We found efficient ways to improve shipping times, integrate online and in-store shopping experiences and establish a culture of increased incentivization amongst store leaders and tenured associates. This pivot obviously included headcount reductions as we streamlined operations and cultivated a fast-paced intense operating environment geared toward cost containment, efficiency and profitability.