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GameStop Q2 revenue fell while Collectibles surged 57%
Collectibles grew to 45.1% of sales, but declines in Software and Hardware offset the gain as total revenue dropped nearly 20% year over year.
GameStop’s Q2 results showed a mixed picture, with revenue down nearly 20% year over year even as the company’s Collectibles segment delivered sharp growth, according to MarketBeat Ratings.
Collectibles rose 57% year over year, reaching 45.1% of sales, and the segment helped drive profitability, though it still makes up less than half of the business. The remainder of GameStop’s segments contracted, leaving investors focused on whether Collectibles can be enough to change the overall trajectory.
MarketBeat Ratings said GameStop reported $790.2 million in revenue, slightly above consensus but still hurt by tough comparisons from last year’s console launches, ongoing store closures, and its exit from the business in France. Segment results included a 47% contraction in Software and a 32% decline in Hardware and Accessories, and the outlet added that those drops are not expected to end.
The report also cited broader industry pressures that are affecting console-related sales, including consumer headwinds and rising console prices tied to high DRAM and memory demand. MarketBeat Ratings noted that while games shifting toward the cloud may change the economics, the company continues to look increasingly like a collectibles retailer with a cash-rich holding position, including its stake in eBay.