GameStop Corp. (NYSE:GME) Q1 2019 Earnings Conference Call Transcript

Jun 04, 2019 • 05:00 pm ET

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GameStop Corp. (NYSE:GME) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Please stand by. Thank you and welcome to GameStop's First Quarter Fiscal 2019 Earnings Conference Call. This conference call will include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Any such statements should be considered in conjunction with the cautionary statements and the safe harbor statement in the earnings release and risk factors discussed in reports filed with the SEC. GameStop assumes no obligation to update any of these forward-looking statements or information. A reconciliation and other information regarding non-GAAP financial measures discussed on the call can be found in the Company's earnings release issued earlier today as well as in the Investor section of the Company's website.

Now, I'd like to turn the call over to the Company's Chief Executive Officer, George Sherman.

Executive
George Sherman

Thank you. Good afternoon, everyone, and thank you for joining us today on our first quarter earnings call. Joining me on today's call is Rob Lloyd, outgoing COO and CFO, who will give an overview of our first quarter results following my comments. It's great to be with you today, my first earnings call since joining GameStop in April. As we get started, I want to thank the Board for the opportunity to be here at GameStop. I appreciate the confidence they have shown in me and recognized the significance of the opportunity in front of us. I'm excited by it and extremely passionate about tackling the challenges facing us as we position GameStop to evolve for the future and protect and expand our leadership position in the video game space.

As I've been digging into our business, it's clear to me that we need to transform to remain a viable player in our industry, which is currently undergoing meaningful technological change. And while the industry grows and attracts new customers, our recent performance shows me that we have work to do to evolve and transform. We owe it to our team to develop a better strategy and a better product for our customer. We have hard work in front of us, we're up to the challenge. I know the team and our great associates across the Organization want to win. The challenge is a significant one. We must immediately address SG&A that's been allowed to deleverage, execute on opportunities to optimize the current business and develop new revenue streams for our future. Doing so will require immediate action on our part in an ongoing sense of urgency that is off the charts.

To that end, we have taken the following actions. As you saw late last week, we solidified our go-forward leadership team. We've established a transformation office and the framework for execution. We've shown a commitment to focusing on the core elements of our business that are meaningful to our future and divesting of those that aren't and demonstrated that we'll have a disciplined approach to capital allocation.

I'd first like to start today by going a little deeper on each of those actions.