GameStop shares fall 10% after retail sales drop in Q2

By James Rogers

Video game retailer posts quarterly profit

GameStop Corp. shares fell more than 10% in after-market trading Tuesday after the video game retailer surprised investors with a quarterly profit, but sales fell more than 30%.

The original meme stock reported second-quarter sales of $798 million, down from $1.164 billion in the year-ago quarter. FactSet is gathering estimates from just two analysts, who were expecting sales of $896 million.

Related: Why Roaring Kitty Is a “Loyal Believer” in GameStop

GameStop (GME) earned $14.8 million, or 4 cents a share, in the quarter, after losing $2.8 million, or 1 cent a share, in the same period a year earlier. On an adjusted basis, GameStop earned 1 cent a share, beating FactSet estimates for a loss of 9 cents a share, also based on forecasts from two analysts.

GameStop ended the quarter with cash, cash equivalents and marketable securities worth $4.204 billion, compared to $1.195 billion at the end of the same period last year.

Related: GameStop Is ‘Stock You Can Still Hug’ and Could Be Poised for a Rally After Earnings

In June, GameStop said it had raised $2.14 billion in stock sales, noting it could use the money for mergers and acquisitions. The company is not holding a conference call in conjunction with its earnings report.

GameStop shares, which rose earlier this year on the return to social media of influential trader Keith Gill, aka Roaring Kitty, are up 33.8% in 2024. The S&P 500 SPX is up 15.2% this year.

-James Rogers

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09-10-24 2009ET