Gamestop’s first-quarter revenue beat market expectations as the retailer made a transition to an online-focused business model. As the COVID shutdowns impacted it’s brick and mortar stores, the company had bolstered its online operations, allowing it to benefit when shoppers began to shift towards ecommerce.

In May, Gamestop launched a digital asset wallet, designed to store, send, receive, and use cryptocurrencies and NFTs. It also said the wallets would be usable on a new NFT marketplace the retailer was opening later this year.

However Wedbush analyst Michael Pachter said Gamestop’s NFT marketplace was “nonsense,” predicting it would, “have no NFTs for sale and no customers, and wallets they are providing will be empty.”

Inventory in the quarter which ended April 30 had risen to $917.6 million, from $5870.9 million a year earlier. 50% of quarterly revenue was attributable to sales of software and collectibles, the first time that happened since the third quarter of 2020. Net sales were above $1.38 billion in the  quarter, which exceeded analysts expectations of $1.32 billion.

Net loss grew to $157.9 million, or $2.08 per share for the first quarter, from 66.8 million or $1.01 per share a year ago.

Gamestop had gained notoriety last year when individual investors on a forum online noticed several large hedge funds had taken up short positions on it. They piled into the stock driving its value up 687%.