GameStop (GME) 10-Q1 Jun 222022 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	3 Months Ended
Cover - shares	Apr. 30, 2022	May 26, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2022
Document Transition Report	false
Entity File Number	1-32637
Entity Registrant Name	GameStop Corp.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-2733559
Entity Address, Address Line One	625 Westport Parkway
Entity Address, City or Town	Grapevine,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76051
City Area Code	(817)
Local Phone Number	424-2000
Title of 12(b) Security	Class A Common Stock
Trading Symbol	GME
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		76,129,034
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001326380
Current Fiscal Year End Date	--01-28

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Current assets:
Cash and cash equivalents	$ 1,035	$ 1,271.4	$ 694.7
Restricted cash	33.3	33.1	57.4
Receivables, net of allowance of $3.5, $3.7 and $3.3, respectively	103.4	141.1	102.1
Merchandise inventories	917.6	915	570.9
Prepaid expenses and other current assets	240.3	238.2	232.1
Total current assets	2,329.6	2,598.8	1,657.2
Property and equipment, net of accumulated depreciation of $993.6, $1,109.9, and $1,029.8, respectively	157.4	163.6	192.6
Operating lease right-of-use assets	568.7	586.6	654.2
Deferred income taxes	16.7	16.3	0
Long-term restricted cash	15.3	15.4	18.7
Other noncurrent assets	37.8	118.6	40
Total assets	3,125.5	3,499.3	2,562.7
Current liabilities:
Accounts payable	386.8	471	388.6
Accrued liabilities and other current liabilities	533.3	668.9	561.8
Current portion of operating lease liabilities	200.3	210.7	219.4
Current portion of long-term debt	6.5	4.1	48.1
Total current liabilities	1,126.9	1,354.7	1,217.9
Long-term debt	35.7	40.5	0
Operating lease liabilities	374.5	393.7	445
Other long-term liabilities	137.7	107.9	20.3
Total liabilities	1,674.8	1,896.8	1,683.2
Stockholders’ equity:
Class A common stock — $.001 par value; 300 shares authorized; 75.9, 69.3 and 75.9 shares issued and outstanding, respectively	0.1	0.1	0.1
Additional paid-in capital	1,587.5	1,577.5	518.5
Accumulated other comprehensive loss	(72.6)	(68.7)	(47.2)
Retained (loss) earnings	(64.3)	93.6	408.1
Total stockholders’ equity	1,450.7	1,602.5	879.5
Total liabilities and stockholders’ equity	$ 3,125.5	$ 3,499.3	$ 2,562.7

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Statement of Financial Position [Abstract]
Receivables, net of allowances	$ 3.5	$ 3.3	$ 3.7
Accumulated depreciation	$ 993.6	$ 1,029.8	$ 1,109.9
Class A common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Class A common stock, shares authorized (in shares)	300	300	300
Class A common stock, shares issued (in shares)	75.9	75.9	69.3
Class A common stock, shares outstanding (in shares)	75.9	75.9	69.3

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Income Statement [Abstract]
Net sales	$ 1,378.4	$ 1,276.8
Cost of sales	1,079.9	946.7
Gross profit	298.5	330.1
Selling, general and administrative expenses	452.2	370.3
Asset impairments	0	0.6
Operating loss	(153.7)	(40.8)
Interest expense, net	0.7	24.7
Loss before income taxes	(154.4)	(65.5)
Income tax expense	3.5	1.3
Net loss	$ (157.9)	$ (66.8)
Net loss per share:
Basic (in dollars per share)	$ (2.08)	$ (1.01)
Diluted (in dollars per share)	$ (2.08)	$ (1.01)
Weighted-average shares outstanding:
Basic (in shares)	75.9	66
Diluted (in shares)	75.9	66

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (157.9)	$ (66.8)
Other comprehensive loss:
Foreign currency translation adjustment	(3.9)	2.1
Total comprehensive loss	$ (161.8)	$ (64.7)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Cash flows from operating activities:
Net loss	$ (157.9)	$ (66.8)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization	17.1	18.7
Stock-based compensation expense	11.1	5.7
Gain on sale of digital assets	(6.9)	0
Digital asset impairments	33.7	0
Asset impairments	0	0.6
Loss on disposal of property and equipment, net	0.4	0.4
Loss on retirement of debt	0	18.2
Other, net	(4.8)	(0.5)
Changes in operating assets and liabilities:
Receivables, net	36.3	3.1
Merchandise inventories	(9.9)	32.4
Prepaid expenses and other assets	(30.3)	(2.9)
Prepaid income taxes and income taxes payable	3.5	(1.2)
Accounts payable and accrued liabilities	(179.8)	(11.4)
Operating lease right-of-use assets and lease liabilities	(16.4)	(15)
Changes in other long-term liabilities	0	(0.1)
Net cash flows used in operating activities	(303.9)	(18.8)
Cash flows from investing activities:
Proceeds from sale of digital assets	76.9	0
Capital expenditures	(10.8)	(14.7)
Net cash flows provided by (used in) investing activities	66.1	(14.7)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of costs	0	551.7
Repayments of revolver borrowings	0	(25)
Payments of senior notes	0	(307.4)
Settlement of stock-based awards	(1.1)	(49.9)
Other	0	(0.1)
Net cash flows (used in) provided by financing activities	(1.1)	169.3
Exchange rate effect on cash, cash equivalents and restricted cash	2.6	0
(Decrease) increase in cash, cash equivalents and restricted cash	(236.3)	135.8
Cash, cash equivalents and restricted cash at beginning of period	1,319.9	635
Cash, cash equivalents and restricted cash at end of period	$ 1,083.6	$ 770.8

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions	Total	Class A Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Beginning balance (in shares) at Jan. 30, 2021		65.3
Beginning balance at Jan. 30, 2021	$ 436.7	$ 0.1	$ 11	$ (49.3)	$ 474.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(66.8)				(66.8)
Issuance of common stock, net of cost (in shares)		3.5
Issuance of common stock, net of cost	551.7		551.7
Foreign currency translation	2.1			2.1
Stock-based compensation expense	5.7		5.7
Settlement of stock-based awards (in shares)		0.5
Settlement of stock-based awards	(49.9)		(49.9)
Ending balance (in shares) at May. 01, 2021		69.3
Ending balance at May. 01, 2021	879.5	$ 0.1	518.5	(47.2)	408.1
Beginning balance (in shares) at Jan. 29, 2022		75.9
Beginning balance at Jan. 29, 2022	1,602.5	$ 0.1	1,577.5	(68.7)	93.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(157.9)				(157.9)
Foreign currency translation	(3.9)			(3.9)
Stock-based compensation expense	11.1		11.1
Settlement of stock-based awards	(1.1)		(1.1)
Ending balance (in shares) at Apr. 30, 2022		75.9
Ending balance at Apr. 30, 2022	$ 1,450.7	$ 0.1	$ 1,587.5	$ (72.6)	$ (64.3)

General Information

General Information	3 Months Ended
General Information	Apr. 30, 2022
Accounting Policies [Abstract]
General Information	General Information The Company GameStop Corp. (“GameStop,” “we,” “us,” “our,” or the “Company”) offers games, entertainment products and technology through its ecommerce properties and stores. We operate our business in four geographic segments: United States, Canada, Australia and Europe. The information contained in these consolidated financial statements refers to continuing operations unless otherwise noted. Basis of Presentation and Consolidation The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in our opinion, necessary for a fair presentation of the information for the periods presented. These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they exclude certain disclosures required under GAAP for complete consolidated financial statements. The accompanying consolidated financial statements and notes are unaudited. The consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the 52 weeks ended January 29, 2022, as filed with the Securities and Exchange Commission ("SEC") on March 17, 2022 (the “2021 Annual Report on Form 10-K”). Due to the seasonal nature of our business, our results of operations for the three months ended April 30, 2022 are not indicative of our future results for the 52 weeks ending January 28, 2023. Our fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day of January. Each of our fiscal years ending January 28, 2023 and January 29, 2022 consist of 52 weeks. All three month periods presented herein contain 13 weeks. All references to years, quarters and months relate to fiscal periods rather than calendar periods. Our business, like that of many retailers, is seasonal, with the major portion of the net sales realized during the fourth quarter, which includes the holiday selling season. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying footnotes. We regularly evaluate the estimates related to our assets and liabilities, contingent assets and liabilities, and the reported amounts of revenues and expenses. In preparing these consolidated financial statements, we have made our best estimates and judgments of certain amounts recognized in the consolidated financial statements, giving due consideration to materiality. Changes in the estimates and assumptions that we have used could have a significant impact on our financial results. Actual results could differ from those estimates.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Apr. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies There have been no material changes to our significant accounting policies included in Note 2 , "Summary of Significant Accounting Policies," in the 2021 Annual Report on Form 10-K. Included below are certain updates related to those policies. Digital Assets We account for digital assets in accordance with ASC 350, Intangibles-Goodwill and Other (Topic 350) . Our digital assets are indefinite-lived intangible assets which are initially recorded at cost. Accordingly, if the fair market value at any point during the reporting period is lower than the carrying value, an impairment loss equal to the difference will be recognized in selling, general and administrative ("SG&A") expenses in our Consolidated Statement of Operations. Impairment losses cannot be recovered for any subsequent increase in fair value until the sale or disposal of the asset. Gains on the sale of digital assets, if any, will be recognized based on the fair value upon sale or disposal of the assets in SG&A expenses in our Consolidated Statement of Operations. In January 2022, we entered into a partnership with Immutable X Pty Limited (“IMX”) and Digital Worlds NFTs Ltd. ("Digital Worlds") pursuant to which the Company was entitled to receive digital assets in the form of IMX tokens once certain milestones have been achieved. Upon entering the agreement, we recognized the fair value of noncurrent receivables and deferred income of $79.0 million. In February 2022, upon announcement of the agreement, we recognized the fair value of noncurrent receivables and deferred income of $31.7 million. Noncurrent receivables and deferred income are recognized in other noncurrent assets and other long-term liabilities, respectively, on our Consolidated Balance Sheets. Once the IMX tokens were received, we recorded the digital asset as an indefinite-lived intangible asset and derecognized the noncurrent receivable. The deferred income is recognized over the term of the agreement. During the first quarter of 2022, we recognized $13.9 million of income in SG&A expenses in our Consolidated Statement of Operations. In February 2022, we sold the digital assets related to this transaction and recognized a gain on sale of $6.9 million in SG&A expenses in our Consolidated Statement of Operations. At-the-Market Equity Offering During the three months ended May 1, 2021, we sold an aggregate of 3,500,000 shares of our common stock under our at-the market equity offering program (the "ATM Transaction"). We generated $556.7 million in aggregate gross proceeds from sales under the ATM Transaction and paid an aggregate of $5.0 million in commissions to the sales agent, among other legal and administrative fees. These commissions and fees are recognized in additional paid-in capital on our Consolidated Balance Sheets and SG&A expenses in our Consolidated Statements of Operations.

Recently Adopted Accounting Sta

Recently Adopted Accounting Standards	3 Months Ended
Recently Adopted Accounting Standards	Apr. 30, 2022
Accounting Policies [Abstract]
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides practical expedients for contract modifications with the transition from reference rates, such as LIBOR, that are expected to be discontinued. This guidance is applicable for our revolving line of credit, which uses LIBOR as a reference rate. The provisions of ASU 2020-04 are effective as of March 12, 2020 and may be adopted prospectively through December 31, 2022. As of January 30, 2022, we adopted this ASU with no material impact to our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard is intended to simplify the accounting and disclosure requirements for income taxes by eliminating various exceptions in accounting for income taxes as well as clarifying and amending existing guidance to improve consistency in application of ASC 740. The provisions of ASU 2019-12 are effective for fiscal years beginning after December 15, 2021, with early adoption permitted. As of January 30, 2022, we adopted this ASU with no material impact to our consolidated financial statements.

Revenue

Revenue	3 Months Ended
Revenue	Apr. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The following table presents net sales by significant product category: Three Months Ended April 30, May 1, Hardware and accessories (1) $ 673.8 $ 703.5 Software (2) 483.7 397.9 Collectibles 220.9 175.4 Total $ 1,378.4 $ 1,276.8 __________________________________________________ (1) Includes sales of new and pre-owned hardware, accessories, hardware bundles in which hardware and digital or physical software are sold together in a single SKU, interactive game figures, strategy guides, mobile and consumer electronics. (2) Includes sales of new and pre-owned gaming software, digital software, and PC entertainment software. See Note 9 , "Segment Information," for net sales by geographic location. Performance Obligations We have arrangements with customers where our performance obligations are satisfied over time, which primarily relate to extended warranties and our Game Informer ® magazine. We expect to recognize revenue in future periods for remaining performance obligations we have associated with unredeemed gift cards, trade-in credits, reservation deposits and our PowerUp Rewards loyalty program (collectively, "unredeemed customer liabilities"), extended warranties and subscriptions to our Game Informer ® magazine. Performance obligations associated with unredeemed customer liabilities are primarily satisfied at the time customers redeem gift cards, trade-in credits, customer deposits or loyalty program points for products that we offer. Unredeemed customer liabilities are generally redeemed within one year of issuance. We offer extended warranties on certain new and pre-owned products with terms generally ranging from 12 to 24 months, depending on the product. Revenues for extended warranties sold are recognized on a straight-line basis over the life of the contract. Performance obligations associated with subscriptions to Game Informer ® magazine are satisfied when periodic magazines are delivered in print form or made available in digital format. The following table presents our performance obligations: Three Months Ended April 30, May 1, Unredeemed customer liabilities $ 201.3 $ 200.3 Extended warranties 84.7 81.0 Subscription 44.0 41.3 Significant Judgments and Estimates We accrue PowerUp Rewards loyalty points at the estimated retail price per point, net of estimated breakage, which can be redeemed by loyalty program members for products we offer. The estimated retail price per point is based on the actual historical retail prices of products purchased through the redemption of loyalty points. We estimate breakage of loyalty points and unredeemed gift cards based on historical redemption rates. Contract Balances Our contract liabilities primarily consist of unredeemed customer liabilities and deferred revenues associated with gift cards, extended warranties and subscriptions to Game Informer ® magazine. The following table presents a rollforward of our contract liabilities: April 30, May 1, Contract liability beginning balance $ 378.3 $ 348.2 Increase to contract liabilities (1) 207.0 208.7 Decrease to contract liabilities (2) (253.5) (234.5) Other adjustments (3) (1.8) 0.2 Contract liability ending balance $ 330.0 $ 322.6 __________________________________________________ (1) Includes issuances of gift cards, trade-in credits and loyalty points, new reservation deposits, new subscriptions to Game Informer ® and extended warranties sold. (2) Includes redemptions of gift cards, trade-in credits, loyalty points and customer deposits and revenues recognized for Game Informer ® and extended warranties. During the three months ended April 30, 2022, there were $27.3 million of gift cards redeemed that were outstanding as of January 29, 2022. During the three months ended May 1, 2021, there were $23.5 million of gift cards redeemed that were outstanding as of January 30, 2021. (3) Primarily includes foreign currency translation adjustments.

Fair Value Measurements and Fin

Fair Value Measurements and Financial Instruments	3 Months Ended
Fair Value Measurements and Financial Instruments	Apr. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements and Financial Instruments	Fair Value Measurements and Financial InstrumentsFair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Applicable accounting standards require disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included in Level 1 for the asset or liability, either directly or indirectly through market-corroborated inputs. Level 3 inputs are unobservable inputs for the asset or liability reflecting our assumptions about pricing by market participants. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis Assets and liabilities that are measured at fair value on a recurring basis include our foreign currency contracts, Company-owned life insurance policies with a cash surrender value, and certain nonqualified deferred compensation liabilities. We value our foreign currency contracts, life insurance policies with cash surrender values and certain nonqualified deferred compensation liabilities based on Level 2 inputs using quotations provided by major market news services, such as Bloomberg , and industry-standard models that consider various assumptions, including quoted forward prices, time value, volatility factors, and contractual prices for the underlying instruments, and other relevant economic measures, all of which are observable in active markets. When appropriate, valuations are adjusted to reflect credit considerations, generally based on available market evidence. The following table presents our assets and liabilities measured at fair value on a recurring basis, which utilize Level 2 inputs: April 30, May 1, January 29, 2022 Assets Foreign currency contracts (1) $ 4.7 $ 2.7 $ 3.8 Company-owned life insurance (2) 0.5 2.8 0.6 Total assets $ 5.2 $ 5.5 $ 4.4 Liabilities Foreign currency contracts (3) $ — $ 0.8 $ 0.4 Nonqualified deferred compensation (3) 0.5 0.6 0.6 Total liabilities $ 0.5 $ 1.4 $ 1.0 _________________________________________________ (1) Recognized in prepaid expenses and other current assets on our Consolidated Balance Sheets. (2) Recognized in other noncurrent assets on our Consolidated Balance Sheets. (3) Recognized in accrued liabilities and other current liabilities on our Consolidated Balance Sheets. Assets that are Measured at Fair Value on a Nonrecurring Basis Assets that are measured at fair value on a nonrecurring basis relate primarily to property and equipment, operating lease right-of-use ("ROU") assets and other intangible assets, including digital assets, which are remeasured when the estimated fair value is below its carrying value. When we determine that impairment has occurred, the carrying value of the asset is reduced to its fair value. Fair value of digital assets held are based on Level 2 inputs, as described above, and impairment losses for digital assets cannot be recovered for any subsequent increase in fair value until the sale or disposal of the asset. During the three months ended April 30, 2022, we recognized impairment charges of $33.7 million associated with digital assets in SG&A expenses in our Consolidated Statements of Operations. These charges were recognized in the United States segment. During the three months ended May 1, 2021, we recognized impairment charges totaling $0.6 million associated with store-level ROU assets to reflect their fair values in asset impairments in our Consolidated Statements of Operations. These charges were recognized in our United States segment. The carrying values of our cash and cash equivalents, restricted cash, net receivables, accounts payable and current portion of debt approximate their fair values due to their short-term maturities.

Debt

Debt	3 Months Ended
Debt	Apr. 30, 2022
Debt Disclosure [Abstract]
Debt	Debt During 2020, our French subsidiary, Micromania SAS, entered into six separate unsecured term loans for a total of €40.0 million, or $42.2 million, as of April 30, 2022. In the second quarter of 2021, at the request of Micromania SAS, these term loans were extended for five years, with an amortization plan for the principal starting in October 2022. The interest rate is 0.7% for three of the term loans totaling €20.0 million, and 1% for the remaining three term loans totaling €20.0 million. The French government has guaranteed 90% of the term loans pursuant to a state guaranteed loan program instituted in connection with the COVID-19 pandemic. As of April 30, 2022, May 1, 2021 and January 29, 2022 there was $42.2 million, $48.1 million and $44.6 million of outstanding debt, including $6.5 million, $48.1 million and $4.1 million of short-term and current debt, respectively, which represents the current portion of the French Term Loans.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Apr. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Letter of Credit Facilities We maintain uncommitted letter of credit facilities with certain lenders that provide for the issuance of letters of credit and bank guarantees, at times supported by cash collateral. As of April 30, 2022, we had approximately $14.4 million of outstanding letters of credit and bank guarantees under these facilities. During the three months ended April 30, 2022, there were no material changes to our commitments as disclosed in our 2021 Annual Report on Form 10-K except as discussed in Note 6 , "Debt." Legal Proceedings In the ordinary course of business, we are, from time to time, subject to various legal proceedings, including matters involving wage and hour employee class actions, stockholder actions and consumer class actions. We may enter into discussions regarding settlement of these and other types of lawsuits, and may enter into settlement agreements, if we believe settlement is in the best interest of our stockholders. We do not believe that any such existing legal proceedings or settlements, individually or in the aggregate, will have a material effect on our financial condition, results of operations or liquidity.

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Apr. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic net income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding and potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options, unvested restricted stock and unvested restricted stock units outstanding during the period, using the treasury stock method. Potentially dilutive securities are excluded from the computations of diluted earnings per share if their effect would be anti-dilutive. A net loss from continuing operations causes all potentially dilutive securities to be anti-dilutive. We have certain undistributed stock awards that participate in dividends on a non-forfeitable basis, however, their impact on earnings per share under the two-class method is negligible. The following table presents a reconciliation of shares used in calculating basic and diluted net loss per common share: Three Months Ended April 30, May 1, Weighted-average common shares outstanding 75.9 66.0 Dilutive effect of restricted stock awards — — Weighted-average diluted common shares 75.9 66.0 Anti-dilutive shares: Restricted stock units 1.2 — Restricted stock 0.2 2.6 As of April 30, 2022 and May 1, 2021 there were 1.4 million and 2.6 million, respectively, of unvested restricted stock and restricted stock units. As of April 30, 2022 and May 1, 2021 there were 77.3 million and 71.9 million, respectively, of shares of Class A common stock that are legally issued and outstanding or are unvested restricted share units that represent a right to one share of Class A Common Stock. As of April 30, 2022, 12.7 million shares of our Class A common stock were directly registered with our transfer agent.

Segment Information

Segment Information	3 Months Ended
Segment Information	Apr. 30, 2022
Segment Reporting [Abstract]
Segment Information	Segment Information We operate our business in four geographic segments: United States, Canada, Australia and Europe. We identified segments based on a combination of geographic areas and management responsibility. Segment results for the United States include retail operations in 50 states; our ecommerce operations; and Game Informer ® magazine. The United States segment also includes general and administrative expenses related to our corporate offices in the United States. Segment results for Canada include retail and ecommerce operations in Canada and segment results for Australia include retail and ecommerce operations in Australia and New Zealand. Segment results for Europe include retail and ecommerce operations in six countries. We measure segment profit using operating earnings, which is defined as income (loss) from operations before intercompany royalty fees, net interest expense and income taxes. Transactions between reportable segments consist primarily of royalties, management fees, intersegment loans and related interest. There were no material intersegment sales during the three months ended April 30, 2022 and May 1, 2021. United Canada Australia Europe Consolidated Three months ended April 30, 2022 Net sales $ 995.3 $ 76.9 $ 126.7 $ 179.5 $ 1,378.4 Operating loss (144.2) (1.1) 1.6 (10.0) (153.7) Three months ended May 1, 2021 Net sales $ 966.3 $ 61.9 $ 114.8 $ 133.8 $ 1,276.8 Operating loss (3.6) (2.9) (0.4) (33.9) (40.8)

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Apr. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Coronavirus Aid, Relief, and Economic Securities Act (the "CARES Act"), which was enacted on March 27, 2020 in the United States, included measures to assist companies, including temporary changes to income and non-income-based tax laws. As of April 30, 2022, we have a $168.6 million U.S. federal income tax receivable resulting from the carryback of net operating losses allowed pursuant to the CARES Act. Income tax receivable is recognized in prepaid expenses and other current assets on our Consolidated Balance Sheets. Our interim tax provision is determined using an estimated annual effective tax rate and adjusted for discrete taxable events and/or adjustments that may occur during the first quarter. We recognized an income tax expense of $3.5 million, or (2.3)%, for the three months ended April 30, 2022 compared to an income tax expense of $1.3 million, or (2.0)%, for the three months ended May 1, 2021. Our effective income tax rate for both periods is primarily due to not recognizing tax benefits on certain current period losses as well as forecasted income taxes due in certain foreign and state jurisdictions in which we operate.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Apr. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements included herein reflect all adjustments (consisting only of normal, recurring adjustments) which are, in our opinion, necessary for a fair presentation of the information for the periods presented. These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they exclude certain disclosures required under GAAP for complete consolidated financial statements.
Fiscal Period	The accompanying consolidated financial statements and notes are unaudited. The consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the 52 weeks ended January 29, 2022, as filed with the Securities and Exchange Commission ("SEC") on March 17, 2022 (the “2021 Annual Report on Form 10-K”). Due to the seasonal nature of our business, our results of operations for the three months ended April 30, 2022 are not indicative of our future results for the 52 weeks ending January 28, 2023. Our fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day of January. Each of our fiscal years ending January 28, 2023 and January 29, 2022 consist of 52 weeks. All three month periods presented herein contain 13 weeks. All references to years, quarters and months relate to fiscal periods rather than calendar periods. Our business, like that of many retailers, is seasonal, with the major portion of the net sales realized during the fourth quarter, which includes the holiday selling season.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying footnotes. We regularly evaluate the estimates related to our assets and liabilities, contingent assets and liabilities, and the reported amounts of revenues and expenses. In preparing these consolidated financial statements, we have made our best estimates and judgments of certain amounts recognized in the consolidated financial statements, giving due consideration to materiality. Changes in the estimates and assumptions that we have used could have a significant impact on our financial results. Actual results could differ from those estimates.
Digital Assets	Digital Assets We account for digital assets in accordance with ASC 350, Intangibles-Goodwill and Other (Topic 350) . Our digital assets are indefinite-lived intangible assets which are initially recorded at cost. Accordingly, if the fair market value at any point during the reporting period is lower than the carrying value, an impairment loss equal to the difference will be recognized in selling, general and administrative ("SG&A") expenses in our Consolidated Statement of Operations. Impairment losses cannot be recovered for any subsequent increase in fair value until the sale or disposal of the asset. Gains on the sale of digital assets, if any, will be recognized based on the fair value upon sale or disposal of the assets in SG&A expenses in our Consolidated Statement of Operations.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This standard provides practical expedients for contract modifications with the transition from reference rates, such as LIBOR, that are expected to be discontinued. This guidance is applicable for our revolving line of credit, which uses LIBOR as a reference rate. The provisions of ASU 2020-04 are effective as of March 12, 2020 and may be adopted prospectively through December 31, 2022. As of January 30, 2022, we adopted this ASU with no material impact to our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard is intended to simplify the accounting and disclosure requirements for income taxes by eliminating various exceptions in accounting for income taxes as well as clarifying and amending existing guidance to improve consistency in application of ASC 740. The provisions of ASU 2019-12 are effective for fiscal years beginning after December 15, 2021, with early adoption permitted. As of January 30, 2022, we adopted this ASU with no material impact to our consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
Revenue (Tables)	Apr. 30, 2022
Revenue from Contract with Customer [Abstract]
Sales and Percentage of Total Net Sales by Significant Product Category	The following table presents net sales by significant product category: Three Months Ended April 30, May 1, Hardware and accessories (1) $ 673.8 $ 703.5 Software (2) 483.7 397.9 Collectibles 220.9 175.4 Total $ 1,378.4 $ 1,276.8 __________________________________________________ (1) Includes sales of new and pre-owned hardware, accessories, hardware bundles in which hardware and digital or physical software are sold together in a single SKU, interactive game figures, strategy guides, mobile and consumer electronics. (2) Includes sales of new and pre-owned gaming software, digital software, and PC entertainment software.
Performance Obligations Associated with Subscriptions	The following table presents our performance obligations: Three Months Ended April 30, May 1, Unredeemed customer liabilities $ 201.3 $ 200.3 Extended warranties 84.7 81.0 Subscription 44.0 41.3
Contract with Customer, Asset and Liability	The following table presents a rollforward of our contract liabilities: April 30, May 1, Contract liability beginning balance $ 378.3 $ 348.2 Increase to contract liabilities (1) 207.0 208.7 Decrease to contract liabilities (2) (253.5) (234.5) Other adjustments (3) (1.8) 0.2 Contract liability ending balance $ 330.0 $ 322.6 __________________________________________________ (1) Includes issuances of gift cards, trade-in credits and loyalty points, new reservation deposits, new subscriptions to Game Informer ® and extended warranties sold. (2) Includes redemptions of gift cards, trade-in credits, loyalty points and customer deposits and revenues recognized for Game Informer ® and extended warranties. During the three months ended April 30, 2022, there were $27.3 million of gift cards redeemed that were outstanding as of January 29, 2022. During the three months ended May 1, 2021, there were $23.5 million of gift cards redeemed that were outstanding as of January 30, 2021. (3) Primarily includes foreign currency translation adjustments.

Fair Value Measurements and F_2

Fair Value Measurements and Financial Instruments (Tables)	3 Months Ended
Fair Value Measurements and Financial Instruments (Tables)	Apr. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents our assets and liabilities measured at fair value on a recurring basis, which utilize Level 2 inputs: April 30, May 1, January 29, 2022 Assets Foreign currency contracts (1) $ 4.7 $ 2.7 $ 3.8 Company-owned life insurance (2) 0.5 2.8 0.6 Total assets $ 5.2 $ 5.5 $ 4.4 Liabilities Foreign currency contracts (3) $ — $ 0.8 $ 0.4 Nonqualified deferred compensation (3) 0.5 0.6 0.6 Total liabilities $ 0.5 $ 1.4 $ 1.0 _________________________________________________ (1) Recognized in prepaid expenses and other current assets on our Consolidated Balance Sheets. (2) Recognized in other noncurrent assets on our Consolidated Balance Sheets. (3) Recognized in accrued liabilities and other current liabilities on our Consolidated Balance Sheets.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
Earnings Per Share (Tables)	Apr. 30, 2022
Earnings Per Share [Abstract]
Reconciliation of Shares Used in Calculating Basic and Diluted Net Loss Per Common Share	The following table presents a reconciliation of shares used in calculating basic and diluted net loss per common share: Three Months Ended April 30, May 1, Weighted-average common shares outstanding 75.9 66.0 Dilutive effect of restricted stock awards — — Weighted-average diluted common shares 75.9 66.0 Anti-dilutive shares: Restricted stock units 1.2 — Restricted stock 0.2 2.6

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
Segment Information (Tables)	Apr. 30, 2022
Segment Reporting [Abstract]
Information on Segments and Reconciliation to Earnings Before Income Taxes	We identified segments based on a combination of geographic areas and management responsibility. Segment results for the United States include retail operations in 50 states; our ecommerce operations; and Game Informer ® magazine. The United States segment also includes general and administrative expenses related to our corporate offices in the United States. Segment results for Canada include retail and ecommerce operations in Canada and segment results for Australia include retail and ecommerce operations in Australia and New Zealand. Segment results for Europe include retail and ecommerce operations in six countries. We measure segment profit using operating earnings, which is defined as income (loss) from operations before intercompany royalty fees, net interest expense and income taxes. Transactions between reportable segments consist primarily of royalties, management fees, intersegment loans and related interest. There were no material intersegment sales during the three months ended April 30, 2022 and May 1, 2021. United Canada Australia Europe Consolidated Three months ended April 30, 2022 Net sales $ 995.3 $ 76.9 $ 126.7 $ 179.5 $ 1,378.4 Operating loss (144.2) (1.1) 1.6 (10.0) (153.7) Three months ended May 1, 2021 Net sales $ 966.3 $ 61.9 $ 114.8 $ 133.8 $ 1,276.8 Operating loss (3.6) (2.9) (0.4) (33.9) (40.8)

General Information (Details)

General Information (Details)	3 Months Ended
General Information (Details)	Apr. 30, 2022segment
Accounting Policies [Abstract]
Number of reportable segments	4

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Digital Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021	Feb. 28, 2022	Jan. 29, 2022	Jan. 30, 2021
Indefinite-lived Intangible Assets [Line Items]
Contract liability beginning balance	$ 330	$ 322.6		$ 378.3	$ 348.2
Gain on sale of digital assets	(6.9)	$ 0
Digital Assets
Indefinite-lived Intangible Assets [Line Items]
Noncurrent receivable			$ 31.7	79
Contract liability beginning balance			$ 31.7	$ 79
Deferred income recognized	$ 13.9

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - At-the-Market Equity Offering (Details) shares in Millions, $ in Millions	3 Months Ended
	May 01, 2021USD ($)shares
Subsidiary or Equity Method Investee [Line Items]
Gross proceeds from sale of common stock	$ 556.7
Fees paid to sales agent	$ 5
Common Stock
Subsidiary or Equity Method Investee [Line Items]
Number of shares sold (in shares) \| shares	3.5

Revenue - Sales and Percentage

Revenue - Sales and Percentage of Total Net Sales by Significant Product Category (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 1,378.4	$ 1,276.8
Hardware and accessories
Disaggregation of Revenue [Line Items]
Net sales	673.8	703.5
Software
Disaggregation of Revenue [Line Items]
Net sales	483.7	397.9
Collectibles
Disaggregation of Revenue [Line Items]
Net sales	$ 220.9	$ 175.4

Revenue - Narrative (Details)

Revenue - Narrative (Details)	3 Months Ended
Revenue - Narrative (Details)	Apr. 30, 2022
Minimum
Disaggregation of Revenue [Line Items]
Extended warranty term	12 months
Maximum
Disaggregation of Revenue [Line Items]
Extended warranty term	24 months

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details) - USD ($) $ in Millions	Apr. 30, 2022	May 01, 2021
Unredeemed customer liabilities
Disaggregation of Revenue [Line Items]
Performance obligation	$ 201.3	$ 200.3
Extended warranties
Disaggregation of Revenue [Line Items]
Performance obligation	84.7	81
Subscription
Disaggregation of Revenue [Line Items]
Performance obligation	$ 44	$ 41.3

Revenue - Change In Contract Li

Revenue - Change In Contract Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Contract With Customer, Contract Liabilities [Roll Forward]
Contract liability beginning balance	$ 378.3	$ 348.2
Increase to contract liabilities	207	208.7
Decrease to contract liabilities	(253.5)	(234.5)
Other adjustments	(1.8)	0.2
Contract liability ending balance	330	322.6
Gift Card Trade In Credits
Contract With Customer, Contract Liabilities [Roll Forward]
Revenue recognized	$ (27.3)	$ (23.5)

Fair Value Measurements and F_3

Fair Value Measurements and Financial Instruments - Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value - Fair Value, Recurring - USD ($) $ in Millions	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Assets
Foreign currency contracts	$ 4.7	$ 3.8	$ 2.7
Company-owned life insurance	0.5	0.6	2.8
Total assets	5.2	4.4	5.5
Liabilities
Foreign currency contracts	0	0.4	0.8
Nonqualified deferred compensation	0.5	0.6	0.6
Total liabilities	$ 0.5	$ 1	$ 1.4

Fair Value Measurements and F_4

Fair Value Measurements and Financial Instruments - Narrative (Details) € in Millions, $ in Millions	3 Months Ended
	Apr. 30, 2022USD ($)	May 01, 2021USD ($)	Jan. 29, 2022EUR (€)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Digital asset impairments	$ 33.7	$ 0
Asset impairments	0	$ 0.6
Unsecured Debt \| French term loans due in 2026 \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	39
Unsecured Debt \| French Term Loans and Credit Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt issued	$ 42.2		€ 40

Debt (Details)

Debt (Details) € in Millions, $ in Millions	3 Months Ended
Debt (Details) € in Millions, $ in Millions	Jul. 31, 2021EUR (€)loan	Apr. 30, 2022USD ($)	Jan. 29, 2022EUR (€)	Jan. 29, 2022USD ($)	May 01, 2021USD ($)	Jan. 30, 2021loan
Debt Disclosure [Line Items]
Net carrying value \| $		$ 42.2		$ 44.6	$ 48.1
Current debt \| $		(6.5)		$ (4.1)	$ (48.1)
French Term Loans and Credit Facility \| Unsecured Debt
Debt Disclosure [Line Items]
Number of separate unsecured term loans \| loan						6
Debt issued		$ 42.2	€ 40
Debt instrument, extension term	5 years
Percent guaranteed by French government	90.00%
French term loans due July 2021 \| Unsecured Debt
Debt Disclosure [Line Items]
Number of separate unsecured term loans \| loan	3
Debt issued \| €	€ 20
French term loans due July 2021 \| Unsecured Debt \| Maximum
Debt Disclosure [Line Items]
Interest rate	0.70%
French term loans due October 2021 \| Unsecured Debt
Debt Disclosure [Line Items]
Debt issued \| €	€ 20
Interest rate	1.00%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Apr. 30, 2022USD ($)
Commitments and Contingencies Disclosure [Abstract]
Outstanding letters of credit and bank guarantees	$ 14.4

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation of Common Shares Used in Calculating Basic and Diluted Net Income (Loss) Per Common Share (Details) - shares shares in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average common shares outstanding (in shares)	75.9	66
Dilutive effect of restricted stock awards (in shares)	0	0
Weighted-average diluted common shares (in shares)	75.9	66
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive restricted stock units, restricted stock and stock options (in shares)	1.2	0
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive restricted stock units, restricted stock and stock options (in shares)	0.2	2.6

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - Common Class A - shares shares in Millions	Apr. 30, 2022	May 01, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Unvested restricted stock and restricted stock units (in shares)	1.4	2.6
Common stock and unvested shares of restricted stock (in shares)	77.3	71.9
ComputerShare
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock and unvested shares of restricted stock (in shares)	12.7

Segment Information - Narrative

Segment Information - Narrative (Details)	3 Months Ended
Segment Information - Narrative (Details)	Apr. 30, 2022segmentcountrylocation
Segment Reporting Information [Line Items]
Number of reportable segments \| segment	4
United States
Segment Reporting Information [Line Items]
Number of states the entity operates \| location	50
Europe \| Retail and e-commerce
Segment Reporting Information [Line Items]
Number of countries in which the entity operates, during the period \| country	6

Segment Information - Sales by

Segment Information - Sales by Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Segment Reporting Information [Line Items]
Net sales	$ 1,378.4	$ 1,276.8
Operating loss	(153.7)	(40.8)
United States
Segment Reporting Information [Line Items]
Net sales	995.3	966.3
Operating loss	(144.2)	(3.6)
Canada
Segment Reporting Information [Line Items]
Net sales	76.9	61.9
Operating loss	(1.1)	(2.9)
Australia
Segment Reporting Information [Line Items]
Net sales	126.7	114.8
Operating loss	1.6	(0.4)
Europe
Segment Reporting Information [Line Items]
Net sales	179.5	133.8
Operating loss	$ (10)	$ (33.9)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Apr. 30, 2022	May 01, 2021
Income Tax Disclosure [Abstract]
Income taxes receivable	$ 168.6
Income tax expense	$ 3.5	$ 1.3
Effective tax rate	(2.30%)	(2.00%)