GameStop shares surge as cost cuts drive surprise profit

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GameStop shares surge as cost cuts drive surprise profit
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GameStop Corp on Tuesday posted a surprise profit for the fourth quarter, its first since early 2021, as lower costs and job cuts padded the videogame retailer's bottom line, sending its shares nearly 50% higher in extended trading.

on Tuesday posted a surprise profit for the fourth quarter, its first since early 2021, as lower costs and job cuts padded the videogame retailer's bottom line, sending its shares nearly 50% higher in extended trading.

The retailer posted an adjusted profit of 16 cents per share, compared with Wall Street expectations for a loss of 13 cents. Wedbush's Pachter also said the rise in gross margin to 22.5% from 16.8% was well below historical levels of 24% to 29%.

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