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GameStop posts preliminary Q2 profit gains despite lower sales
The company expects operating income of $150 million to $170 million, and it plans to report full Q2 results on September 8.
GameStop reported preliminary second-quarter results showing net income of between $290 million and $310 million, compared with $168.6 million a year earlier, while net sales fell to a range of $780 million to $800 million from $972.2 million, according to Yahoo Finance.
The retailer said the profit figure reflects about $238 million in net gains from its eBay derivative asset and equity investment, partly offset by around $75 million in losses on digital assets and related receivables.
GameStop attributed the sales decline to the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of its France operations, while projecting operating income of $150 million to $170 million, versus $66.4 million in the prior-year quarter.
GameStop also said it expects to release complete Q2 results on September 8, and it amended a plan to exchange about $1.4 billion in convertible notes for Class A common stock. Under the revised structure, noteholders will receive roughly 55.5 million shares and about $358.4 million in cash, with the exchange expected to close on or about September 3.