GameStop (NYSE:GME) saw its shares tumble more than 23% before the market open on Friday after the video game retailer reported preliminary sales for the first quarter that missed the average analyst estimate.
In particular, the company expects preliminary net sales to be between $872 million and $892 million, falling short of the estimated $1.05 billion and down from $1.237 billion in the same fiscal quarter last year.
The net loss is anticipated to be in the range of $27 million to $37 million, compared to a net loss of $50.5 million in the prior year's fiscal quarter.
Cash, cash equivalents, and marketable securities are expected to range between $1.073 billion and $1.093 billion, down from $1.310 billion at the end of the previous year's fiscal quarter.
GameStop also filed for a mixed-shelf offering. The retailer said it has entered into an open market sale agreement with Jefferies, saying it may sell up to 45 million shares of Class A stock.