November 30, 2024

GameStop’s Revenue Swoons—But the Retailer Posted a Surprise Profit

business people have a meeting about company statistics
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Key Takeaways

  • GameStop swung to an unexpected profit in the second quarter, but its sales fell 31% and missed expectations.
  • The meme stock standout struggled Tuesday before its results came out, but the stock is still substantially higher year-to-date.
  • GameStop did not issue guidance, nor did it schedule an earnings call.

GameStop’s ( GME ) second quarter sales declined year-over-year, missing Wall Street’s expectations, but the video game retailer managed to swing to a surprise profit.

Revenue in the latest was $798 million, down 31% year over year and short of the Visible Alpha analyst consensus. Net income jumped to $14.8 million, 4 cents per share, compared to a loss of $2.8 million, or 1 cent per share, a quarter earlier. Analysts had expected the company’s loss to widen year-over-year.

Shares of GameStop fell more than 3% ahead of the results Tuesday and are down a bit less than 1% after the bell. The stock is up nore than 30% in 2024, due in part to spikes in its share price earlier this year driven by posts from the meme stock influencer known as “ Roaring Kitty .”

GameStop said it would not hold an earnings call, and the company did not release guidance.

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