GameStop today announced its Q1 financials, showing a big $165 million net loss, and a portion of this drop was from the company's payouts during COVID-19 lockdowns.
GameStop closed all of its 3,000+ stores in the U.S. for weeks due to the pandemic. A portion of these stores remained open for curbside pickup, but a lot of employees had their hours drastically cut. GameStop promised to pay these employees limited wages during the closure, and now we know how much.
While scanning GameStop's latest financials I noticed something interesting. The company doled out $18.5 million to its employees during the COVID-19 lockdowns, and recorded $3 million in expenses from cleaning materials and other measure to combat the virus.
"...An additional $18.5 million in incremental wages paid to our hourly associates to help offset lost wages due to store closures from the COVID-19 pandemic, and approximately $3.0 million in incremental costs associated with safety materials and equipment to ensure the safety of our customers and associates," reads the report.
The earnings report also mentions some GameStop stores were unable to pay their rent due to government closures and other restrictions.
"Due to the impact of governmental regulations and certain landlord decisions to close properties, the Company did not make a portion of certain lease payments and remains in discussions with its landlords regarding ongoing rent payments, including potential abatement, deferral and / or restructuring of future rents during this period of COVID-19 related closure."
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