10:13 AM EDT, 05/17/2024 (MT Newswires) -- GameStop ( GME ) shares tumbled intraday Friday after disclosing preliminary results that pointed to a sharp year-over-year decline in fiscal first-quarter sales, while the video game retailer said it may sell up to 45 million of its class A shares.

Sales are set to come in between $872 million and $892 million for the three months through May 4, down from the $1.24 billion the company recorded last year, GameStop ( GME ) said. Two analysts polled by Capital IQ currently expect revenue of $1.05 billion for the quarter.

The retailer anticipates its net loss to be in a range of $27 million to $37 million, compared with a loss of $50.5 million in the 2023 quarter. Selling, general and administrative expenses are pegged at $290 million to $300 million, down from $345.7 million a year ago.

In the prior fiscal quarter, the company's sales fell to $1.79 billion from $2.23 billion on a yearly basis. Net income rose to $63.1 million from $48.2 million, while per-share adjusted earnings grew to $0.22 from $0.16.

GameStop's ( GME ) shares plunged 27% in Friday's trading session, extending losses into the third consecutive day as the meme stock rally fizzled. Earlier in the week, GameStop's ( GME ) shares surged following the return of "Roaring Kitty," the person behind the meme stock craze in 2021.

Separately, GameStop ( GME ) said it filed a prospectus with the Securities and Exchange Commission for a potential offering of up to 45 million class A shares. The company entered into an open market sale agreement, under which it may sell shares from time to time through sales agent Jefferies, according to the filing.

The retailer said it plans to use the proceeds from the offering for general corporate purposes, which may include acquisitions and investments.

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