(Reuters) -GameStop Corp posted a surprise profit for the fourth quarter and surpassed revenue expectations as the videogame retailer trimmed costs and reduced headcount, sending its shares more than 32% higher in extended trading.
The company has been shoring up its online sales capabilities in a bid to transform into a digital behemoth from its current mainstay of brick-and-mortar stores.
GameStop has also been targeting profitability by reining in expenses and focusing on higher-margin collectibles and pre-owned product categories. Its selling, general and administrative costs fell by about 16% in the quarter.
The retailer posted an adjusted profit of 16 cents per share, compared with Wall Street expectations for a loss of 13 cents.
The stock, which is popular among retail investors, lost about half its value last year and has declined 4% so far this year.